Homeowners insurance policy covers large scope

I REFER to the article Homeowners rarely buy natural disaster insurance policies, dated Nov 10. I wish to correct what was published, for the benefit of the general public.

In Malaysia, our homeowners and householders policies are designed and calculated based on a standard tariff rate prescribed by the Association for General Insurance Malaysia (Persatuan Insurans Am Malaysia, PIAM). It was only on July 1, 2016, that Bank Negara Malaysia introduced the Phased Liberalisation of Motor and Fire Tariffs.

The standard homeowners and householders policy can protect your home and personal possessions against:

Fire, lightning, thunderbolt, subterranean fire; domestic explosion; aircraft damage; impact by road vehicles or animals; bursting or overflowing of domestic water tanks, apparatus or pipes; theft but only accompanied by actual forcible and violent breaking into or out of a building; hurricane, cyclone, typhoon, windstorm; earthquake, volcanic eruption; flood but excluding loss or damage caused by subsidence or landslip; loss of rent – limit is 10% of total sum insured; liability to the public – limit is RM50,000; and other perils approved by PIAM.

Our homeowners and householders policy is very comprehensive and inclusive, and covers a large scope. When there is a claim, it is normally the fault of the insurance agent/ customer service who does not do a good job in explaining to his customers, the premium is too high which will hinder the customer from buying, etc. It is hoped that at the end of 2018 and the Phased Liberalisation of Motor and Fire Tariffs by Bank Negara Malaysia, we can see our insurers transitioning to a fully and ready liberalised market.

YEUNG KIM LING Kuala Lumpur