Skip to content

Insurance

Property Insurance

Fire Insurance

What does it cover?

This policy covers your properties such as :

  • Building
  • Fixtures
  • Contents
  • Stocks
  • and all other physical property belonging or held in trust by the company
Key Coverage

This policy covers your property against loss or damage caused by:

  • Fire & Lightning
  • Optional Perils
    • Aircraft Damage
    • Earthquake and Volcanic Eruption
    • Storm Tempest
    • Flood Damage
    • Explosion
    • Impact Damage
    • Bursting or Overflowing of Water Tanks Apparatus or Pipes
    • Riot Strike and Malicious Damage
    • Electrical Installation Clause B
    • Bush or Lalang Fire
    • Subsidence and Landslip
    • Spontaneous Combustion
    • Damage by Falling Trees or Branches and Objects
    • Sprinkler Leakage
    • Smoke Damage
    • Cold Storage Clause B/ Incubator Clause

The sum insured for fire insurance is the amount of money that the insurance company will pay in the event of a fire loss. Determining the correct sum insured is crucial to ensure adequate coverage and avoid underinsurance or over insurance.

Here are some common methods used to determine the sum insured for fire insurance:

    1. Replacement Cost: This method calculates the cost of replacing the damaged property with new items of similar quality and condition after deducting the depreciation due to wear and tear.
       
    2. Reinstatement Value (Old for New): This method calculates the cost of rebuilding the damaged property to its original state, including the cost of removing debris and preparing the site subject to the age of the property is below 5 years.
       
    3. Average Clause: This clause stipulates that if the sum insured is less than the full value of the property, the insurance company will only pay a proportionate amount of the claim. It’s important to avoid underinsurance to prevent this from happening.
       

Note: 
This list is non-exhaustive. Please refer to the sample policy contract for the full list of exclusions under this policy.

  • Theft during or after a fire.
  • Burning of property by order of any public authority.
  • Subterranean fire, pollution or contamination.
  • War, civil war and any act of terrorism.
  • Radioactive and nuclear energy risks.
  • Property damage to data or software.

Inflation: The value of property increases over time due to inflation. Consider adjusting your sum insured periodically to ensure the insured value is in accordance to the current market value.


Improvements: If you make significant improvements to your property, you may need to increase the sum insured.


Depreciation: The value of property decreases over time due to wear and tear. Some policies may include a depreciation clause, which reduces the payout based on the age of the property.

The calculator is a guide only to assist you in determining the estimated sums to be insured for residential properties, simple shop house and shop office and is not a substitute for professional advice to be obtained.


Before using the calculator, kindly note the following:Â

  • if any renovations have been made to your property, you are advised to indicate the amount (cost of renovation) in the box provided in the BCC.
  • if your property has unique or special design features and/or have extensive renovations and/or have complex structures affixed, you are advised to obtain professional advice for a more accurate assessment of your property.

Â

To access to the BCC, kindly click on this URL.

Fire Consequential Loss Insurance

What does it cover?

This policy covers your properties such as :

  • Loss of profit
  • Revenue
  • Rental
  • Standing charges
  • Wages or salaries on a payroll basis
  • Increase in cost of working due to business interruption as a result of fire and/or other extended perils

How it Works:

  • Policy Purchase: A business purchases a fire and consequential loss insurance policy with a specified sum insured.
  • Loss Occurrence: If a fire occurs and if there is an indirect losses, the insured business files a claim with the insurance company.
  • Assessment: The insurance company assesses the extent of the direct and indirect losses.
  • Admissibility: the Fire Consequential Loss policy shall be admissible only when there is a direct loss payable under the Fire Policy.
Key Coverage

This policy covers your property against loss or damage caused by:

  • Loss of Gross Profit (Difference Basis or Addition Basis cover)
  • Loss of Gross Revenue
  • Loss of Gross Rental
  • Standing Charges only
  • Wages (Dual Basis or 100% or Pro-rate)
  • Wages and Salaries on Payroll Basis
  • Increased Cost of Working
  • Auditor Fees

The sum insured for fire contingent loss (FCL) is the amount of money that the insurance company will pay to cover your loss of income or profits if your business is unable to operate due to a fire. Determining the correct sum insured for FCL is crucial to ensure adequate coverage and avoid underinsurance or overinsurance.

Here are some common methods used to determine the sum insured for FCL:

    1.  Historical Profit and Loss: This method uses your business’s past profit and loss statements to estimate your potential loss of income in the event of a fire. Factors such as average net profit, operating expenses, and sales revenue are considered.
      Â
    2. Gross Profit Method: This method estimates your loss of income based on your gross profit margin and projected sales during the period of business interruption.
      Â
    3. Fixed Expense Method: This method focuses on your fixed expenses that continue to be incurred even if your business is not operating.
      Â
    4. Contingency Fee Method: This method uses a percentage of your annual net profit as the sum insured.

Note: 
This list is non-exhaustive. Please refer to the sample policy contract for the full list of exclusions under this policy.

  • Losses

    • by extraordinary events during an interruption

    • by restrictions imposed by authorities on the reconstruction or operation of the business.

    • due to insufficient capital for timely restoration or replacement of property destroyed, damaged or lost.

    • due to burning of property by order of any public authority.

  • Subterranean fire.

  • War, civil war and any act of terrorism.

  • Radioactive and nuclear energy risks.

  • Property damage to data or software.

Business Continuity Plan: A well-developed business continuity plan can help you estimate the potential impact of a fire on your business operations and income.


Insurance Period: The sum insured should be based on the expected duration of business interruption in case of a fire.
Contingency: It’s advisable to include a contingency factor to account for unexpected expenses or lost opportunities during the recovery period.


Inflation: The value of your income may increase over time due to inflation. Consider adjusting the sum insured periodically to account for this.

Plate Glass Insurance

What does it cover?

This policy covers all forms of plate glasses in your showroom, office or building.

Key Coverage

This policy is an “All risks” cover for plate glass

  • Indemnifies you for any glass broken by fracture extending throughout the entire thickness of the glass as a result of an accident or misfortunate not otherwise excluded.
  • All-risk type of covers against unforeseen losses or damages to insured properties, with specific exclusions outlined in the policy.

The basis of sum insured for plate glass policy is typically the reinstatement value. This means that the insurer will cover the cost of replacing the broken glass with glass of similar quality, without taking into account any depreciation or wear and tear.

However, it’s important to note that the sum insured should be sufficient to cover the total replacement cost of the broken glass, including any lettering, embossing, bending, silvering, or ornamental work. If the sum insured is not adequate, the insurer may only pay a portion of the claim.  Â

Here are some additional points to keep in mind:

First loss basis: Some insurers may offer plate glass insurance on a first loss basis, which means that they will only cover the cost of replacing the first piece of glass that breaks during the policy period based on reinstatement value.
Reinstatement of sum insured with additional premium is required if the sum insured has been fully claimed within the policy period.


What is reinstatement value – insurer will cover the cost of replacing the broken glass with glass of similar quality, without taking into account any depreciation or wear and tear.

Note: 
This list is non-exhaustive. Please refer to the sample policy contract for the full list of exclusions under this policy.

  • Breakage arising out of fire, explosion, earthquake, volcanic eruption or flood.
  • Dilapidation of frames or framework
  • Pressure waves caused by aircraft and other aerial devices travelling at sonic or supersonic speeds.
  • Where any member of your household or business staff is concerned as principal or accessory.
  • Occasioned by or happening through:
    • War, invasion, acts of foreign enemies, hostilities or warlike operations (whether war is declared or not), or civil war.
      mutiny, strike riot and civil commotion, military or popular rising, insurrection, rebellion, revolution, military or usurped power, martial law or state of siege or any of the events or causes which determine the proclamation or maintenance of martial law or state of siege.
    • Any act of terrorism.

All Risk Insurance

What does it cover?

The policy covers the movables and immovables properties (mostly electronics or assets) such as :

  • Office equipment, furniture, fixtures and fittings.
  • Industrial plants and machinery.
  • Renovations and office partitions that do not form part of a building.
  • Electronic equipment, e.g., computers.
  • Mobile items, e.g., notebooks, phones and cameras.
Key Coverage

All-risk type of covers against unforeseen losses or damages to insured properties, with specific exclusions outlined in the policy.

    1. Replacement Cost: This method calculates the cost of replacing the damaged property with new items of similar quality and condition after deducting the depreciation due to wear and tear.
      Â
    2. Reinstatement Value (Old for New): This method calculates the cost of rebuilding the damaged property to its original state, including the cost of removing debris and preparing the site subject to the age of the property is below 5 years.
      Â
    3. Average Clause: This clause stipulates that if the sum insured is less than the full value of the property, the insurance company will only pay a proportionate amount of the claim. It’s important to avoid underinsurance to prevent this from happening.
      Â

Note: 
This list is non-exhaustive. Please refer to the sample policy contract for the full list of exclusions under this policy.

Damage resulting from:

  • Wear and tear, depreciation, gradual deterioration, mildew, moth, vermin or any process of cleaning, dyeing, repairing, restoring or renovating.
  • Mechanical or electrical breakdown or derangement.
  • Overloading or strain.
  • Scratching or denting of any article, breakage of lenses, and breakage of brittle articles such as glass china earthenware, marble and gramophone records – unless caused by theft or fire.
  • War, invasion, acts of foreign enemies, hostilities or war-like operations (whether war is declared or not) or civil war.
  • Mutiny, strike, riot and civil commotion, military or popular rising, insurrection, rebellion, revolution, military or usurped power, martial law or state of siege or any of the events or causes which determine the proclamation or maintenance of martial law or state of siege.
  • Confiscation, nationalization,  requisition and destruction or damage to property by or under the order of any government, public or local authority.

Inflation: The value of property increases over time due to inflation. Consider adjusting your sum insured periodically to ensure the insured value is in accordance to the current market value.

Depreciation: The value of property decreases over time due to wear and tear. Some policies may include a depreciation clause, which reduces the payout based on the age of the property. Please take note that net book value is not an appropriate value to be use as sum insured.

Electronic Equipment Insurance

What does it cover?

This policy covers your computers and other electronic equipment, whether the items are at work or at rest or being dismantled for the purposes of cleaning, overhauling or being shifted within the premises. Insurance coverage can also be extended to cover external data media and increased cost of working.

All-risk type of cover protects against unforeseen losses or damages to insured properties, with specific exclusions outlined in the policy.

The policy comprises as follows:

Section 1: Material damage
Section 2: External data media (Optional)
Section 3: Increased cost of working (Optional)
Key Coverage

Material damage

Covers all hardware installation, including peripheral equipment and accessories.

External data media

Covers external data media (inclusive of the information stored) external to the computer system.

Increased cost of working

Provides indemnity for increased cost of working following material loss or damage by indemnifying the cost of hiring replacement equipment.

Section 1: Material damage: This section covers the cost of repairing or replacing the damaged equipment. The basis of sum insured for this section would typically be the reinstatement value, actual cash value, or agreed value, depending on the policy.
Section 2: External data media: This section covers the cost of replacing any external data media, such as hard drives or USB drives, that are damaged or lost. The basis of sum insured for this section would typically be the reinstatement value or actual cash value.
Section 3: Increased cost of working: This section covers the increased costs that the insured may incur as a result of the damage to their equipment, such as the cost of renting replacement equipment or hiring additional staff. The basis of sum insured for this section would typically be the actual cost incurred by the insured.

Note: 
This list is non-exhaustive. Please refer to the sample policy contract for the full list of exclusions under this policy.

  • War, civil war and any act of terrorism.
  • Radioactive and nuclear energy risks.
  • Willful acts or willful negligence.
  • Wear and tear.
  • The responsibilities of a contractor, supplier and repairer.
  • Failure or interruption of gas, water or electricity services.
  • Aesthetic defects.
  • Consequential loss and liability of all kinds.Â

Storage Tank Insurance

What does it cover?

Storage tanks such as palm oil and fuel oil hold your company’s commodities. Give it and its contents the protection it needs against unexpected losses or damages.

Key Coverage
Section I: Material damage: This section of insurance covers the business owner against loss of or damage to storage tanks due to accidental damage to the tanks caused by bursting, splitting, rupture, collapse or similar fortuitous events caused not hereinafter excluded by the policy.
Section II: Loss of contents: This section of insurance covers the Insured against loss of contents of the specific tanks following the loss or damage which are indemnifiable under Section I – Material Damage.
    1. Replacement Cost: This method calculates the cost of replacing the damaged property with new items of similar quality and condition after deducting the depreciation due to wear and tear.

    2. Reinstatement Value (Old for New): This method calculates the cost of rebuilding the damaged property to its original state, including the cost of removing debris and preparing the site subject to the age of the property is below 5 years.

    3. Average Clause: This clause stipulates that if the sum insured is less than the full value of the property, the insurance company will only pay a proportionate amount of the claim. It’s important to avoid underinsurance to prevent this from happening.

Note: 
This list is non-exhaustive. Please refer to the sample policy contract for the full list of exclusions under this policy.

  • Damage to any tank unless such damage makes unsafe its continued use
  • Damage to glass, enamel or other similar lining
  • Wearing away or wasting of the material of the tank
  • Costs of re-leveling any tank
  • Loss/damage arising during dismantling or erection or caused by cleaning, repairing or testing
  • Loss/damage caused by fire, lightning or explosion
  • Loss of use of tanks or consequential loss
  • Loss/damage from pressure waves caused by aircraft
  • Loss/damage from war, invasion, act of foreign enemy, hostilities, civil war, rebellion, revolution, insurrection, military or usurped power, riot, strike, lock-out, civil commotion
  • Loss/damage from ionising, radiation or contamination by radioactivity, or from radioactive, toxic properties of nuclear components
  • Terrorism
  • Loss/damage to computer software
  • Communicable Disease
  • Property Cyber And Data
  • Sanction Limitation

Civil Engineering Completed Risk Insurance

What does it cover?

This policy covers the physical damage to businesses operating in all areas of infrastructure including motorways, railways, roads, bridges, tunnels, ports and harbours etc.

Key Coverage
  • Physical damage: Damage to the completed civil engineering project caused by fire, explosion, storm, flood, earthquake, and other perils.
  • Accidental damage: Damage caused by accidents during construction or maintenance.
  • Third-party liability: Legal liability for damage to property or injury to people caused by the insured project.
  • Loss of use: Loss of income or revenue due to damage to the project that prevents its use.
  • Increased cost of repair: Additional costs incurred to repair or replace damaged parts of the project.
  • Theft: Loss due to theft
    1. Replacement Cost: This method calculates the cost of replacing the damaged property with new items of similar quality and condition after deducting the depreciation due to wear and tear.

    2. Reinstatement Value (Old for New): This method calculates the cost of rebuilding the damaged property to its original state, including the cost of removing debris and preparing the site subject to the age of the property is below 5 years.

    3. Average Clause: This clause stipulates that if the sum insured is less than the full value of the property, the insurance company will only pay a proportionate amount of the claim. It’s important to avoid underinsurance to prevent this from happening.

Note: 
This list is non-exhaustive. Please refer to the sample policy contract for the full list of exclusions under this policy.

  • Loss or damage caused by or aggravated by latent or inherent defects
  • Wear and tear, corrosion, erosion, normal settlements
  • War, civil war, terrorism
  • Wilful acts or negligence
  • Communicable disease
  • Nuclear risks
  • Cyber attacks

Boilers And vessels Insurance

What does it cover?

This policy covers boilers or pressure vessels against damage caused solely by explosion or collapse, which is not covered under Fire Insurance.

Key Coverage

It covers:

  • Damage (other than fire) to boiler or pressure vessel.
  • Damage to third party property
  • Death of or bodily injury to third party
    1. Replacement Cost: This method calculates the cost of replacing the damaged property with new items of similar quality and condition after deducting the depreciation due to wear and tear.

    2. Reinstatement Value (Old for New): This method calculates the cost of rebuilding the damaged property to its original state, including the cost of removing debris and preparing the site subject to the age of the property is below 5 years.

    3. Average Clause: This clause stipulates that if the sum insured is less than the full value of the property, the insurance company will only pay a proportionate amount of the claim. It’s important to avoid underinsurance to prevent this from happening.

Note: 
This list is non-exhaustive. Please refer to the sample policy contract for the full list of exclusions under this policy.

  • Normal wear and tear
  • Willful act or willful negligence
  • War and the like
  • Typhoon, hurricane, volcanic eruption, earthquake or other convulsion of nature
  • Damage of own property caused by fire arising from explosion or collapse

Industrial All Risk Insurance

What does it cover?

This is a comprehensive packaged policy providing cover against Material Damage and Business Interruption of a business enterprise total Sum insured not less than RM50Million This policy provides cover against all risks/ perils other than those which are excluded in the Policy

The policy comprises as follows:

Section 1: Material Damage: Covers accidental physical loss or damage to the property insured due to any cause other than those excluded.

Section 2:  Business Interruption/ Loss of Profit: Covers financial loss arising from business interruption or interference in consequence of loss, destruction or damage covered under Section I
Basic of Sum Insured

    1. Reinstatement Value: This method calculates the sum insured based on the cost of reconstructing the damaged civil engineering project to its original state. This approach does not consider depreciation.

    2. Actual Cash Value (ACV): This method calculates the sum insured based on the current market value of the damaged civil engineering project, taking into account depreciation due to factors such as age, wear, and tear.

Note: 
This list is non-exhaustive. Please refer to the sample policy contract for the full list of exclusions under this policy.

Damage to the property insured caused by:

  • Faulty or defective design materials or workmanship latent defect gradual deterioration deformation or distortion or wear and tear
  • Interruption of the water supply gas electricity or fuel systems or failure of the effluent disposal systems to and from the Premises settling or bedding down of structures shrinkage or expansion of foundations walls, floors or ceilings
  • Collapse or cracking of buildings
  • Corrosion rust extremes or changes in temperature dampness dryness wet or dry rot fungus shrinkage evaporation loss of weight pollution contamination change in colour flavour texture or finish action of light vermin insects marring or scratching or inherent vice
  • Theft unless accompanied by violence or threat of violence to persons or forcible and violent entry to or exit from the Premises

Any Questions about Insurance? Contact Here.

Contact Us
KSA Synergy Sdn. Bhd. (Malaysia)

(1089007V / 201401012924)

Quick Links
Get In Touch

KSA Synergy Sdn. Bhd. (Malaysia)

  • 65-1, Jalan Metro Perdana Barat 1, Taman Usahawan Kepong, 52000 Kuala Lumpur.

KSA Synergy (Singapore) Pte. Ltd.

  • 201 Henderson Road, #06-26, APEX @ Henderson Singapore 159545

© All Rights Reserved.