Burglary Insurance
*A standalone Burglary
Insurance is not entertain unless accompanied by Fire Insurance and
Other classes of insurance.*
INTRODUCTION
The policy affords
cover for loss of or damage to the property insured by Theft whilst
contained in the Business or Trade premises.
SCOPE OF COVER
(i) THEFT accompanied by Actual, Forcible and Violent ENTRY.
(ii) By THEFT committed by any person (other than an employee) illegally concealed in the premises.
(iii) Resulting of armed robbery.
(iv) Resulting in damage to the Property Insured.
(v) Resulting in damage to the Premises due to such Theft or any attempt thereat.
DEFINITIONS
TYPES OF POLICIES
i. Full Value Policies
These types of policies are usually subject to the Average Clause. Therefore, in order to ensure adequate indemnity at the time of loss the proposer must insure his property for the full value. The correct sum insured should be what the proposer considers to be the highest amount at risk at any one time.
If the stock is subject to frequent fluctuation, then arrangements may be made to have a declaration endorsement attached to the Policy stipulating monthly or quarterly declarations of the highest values during either the month or quarter respectively, similar to the Declaration Conditions applicable to Fire policies.
ii. First Loss Policies
These can be issued where the size of the risk and the nature of stock make such a policy appropriate. The sum insured must be not less than the anticipated maximum probable single loss and in no event should it be less than 10% of the total value of the property covered.
A First Loss policy should also not be granted when the total sum insured is less than RM 25,000.00. Where the cover is arranged on this basis, the insured should declare the Full Value of the property at risk and the sum insured proposed for insurance. Average will apply should the actual Full Value be less than that declared.
(i) THEFT accompanied by Actual, Forcible and Violent ENTRY.
(ii) By THEFT committed by any person (other than an employee) illegally concealed in the premises.
(iii) Resulting of armed robbery.
(iv) Resulting in damage to the Property Insured.
(v) Resulting in damage to the Premises due to such Theft or any attempt thereat.
DEFINITIONS
TYPES OF POLICIES
i. Full Value Policies
These types of policies are usually subject to the Average Clause. Therefore, in order to ensure adequate indemnity at the time of loss the proposer must insure his property for the full value. The correct sum insured should be what the proposer considers to be the highest amount at risk at any one time.
If the stock is subject to frequent fluctuation, then arrangements may be made to have a declaration endorsement attached to the Policy stipulating monthly or quarterly declarations of the highest values during either the month or quarter respectively, similar to the Declaration Conditions applicable to Fire policies.
ii. First Loss Policies
These can be issued where the size of the risk and the nature of stock make such a policy appropriate. The sum insured must be not less than the anticipated maximum probable single loss and in no event should it be less than 10% of the total value of the property covered.
A First Loss policy should also not be granted when the total sum insured is less than RM 25,000.00. Where the cover is arranged on this basis, the insured should declare the Full Value of the property at risk and the sum insured proposed for insurance. Average will apply should the actual Full Value be less than that declared.
PRINCIPAL
EXCLUSIONS
(i) Theft by any member of the Insured,'s family staff or domestic servants or any person lawfully on the premises.
(ii) Medals, Coins, Curios, Rare Books, Plans, Patterns, Models, Designs, Deeds, unless specifically included in the Schedule.
(iii) Loss of or damage arising from unoccupancy for a period exceeding 30 consecutive days.
(iv) Loss or damage if there is undisclosed dual occupancy or incorrect description of occupancy.
(v) 'Premises' excludes yard, garden, outbuilding unless specifically included.
(vi) Damage by Fire or Explosion
(i) Theft by any member of the Insured,'s family staff or domestic servants or any person lawfully on the premises.
(ii) Medals, Coins, Curios, Rare Books, Plans, Patterns, Models, Designs, Deeds, unless specifically included in the Schedule.
(iii) Loss of or damage arising from unoccupancy for a period exceeding 30 consecutive days.
(iv) Loss or damage if there is undisclosed dual occupancy or incorrect description of occupancy.
(v) 'Premises' excludes yard, garden, outbuilding unless specifically included.
(vi) Damage by Fire or Explosion
EXTENSIONS
AVAILABLE
i. Strike & Riot
ii. Cash in Locked Safe/Cabinet up to a maximum of RM1,000.00
BURGLARY INSURANCE OCCUPATION CODES AND INDICATIVE RATES ONLY SUBJECT TO MARKET CHANGES, RISK MANAGEMENT & UNDERWRITING EXPERIENCE.
i. Strike & Riot
ii. Cash in Locked Safe/Cabinet up to a maximum of RM1,000.00
BURGLARY INSURANCE OCCUPATION CODES AND INDICATIVE RATES ONLY SUBJECT TO MARKET CHANGES, RISK MANAGEMENT & UNDERWRITING EXPERIENCE.
INDICATIVE ONLY RATES
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REMARKS: First Loss Limit = First Loss Sum Insured x 100 Full Value
Discounts HIGH FULL FULL
VALUE VALUE
DISCOUNT FACTOR
UP
TO (%)
5 million 10 10 million 15 15 million 20 20 million 30 50 million 40 100 million 50 TOTAL
PREMIUM FROM DISCOUNT FACTOR (%) OTHER CLASSES (RM) 100,000/- and above 5 250,000/- and above 10 500,000/- and above 20 1,000,000/- and above 30 # Discount factor for Competition: subject to maximum 25%. UNDERWRITING CONSIDERATIONS i) In view of the possibility of fraudulent claims every effort must be made to ensure that the moral hazard is good. ii) Proposal form must be fully and properly completed and accompanied by survey report with details of all protective measures. iii) Fire Insurance must be placed with us; otherwise the proposal for Burglary Insurance will be declined. iv) Short period cover cannot be granted. v) A Limit of Liability in respect of any one article should be stated when describing the property insured. vi) Excess must be imposed. vii)Full Theft cover should not be granted. DECLINED RISKS i) Antique. ii) Betting (4D & Magnum). iii) Money Changer. iv) Stamp. v) Jewelers/Goldsmiths/Pawnbrokers MINIMUM PREMIUM: RM100.00 REFERRED RISKS i) Furs, handphone, computer, watch, cigarette, liquor, wine, electrical goods,hardware, motor spare parts, car accessories, audio equipments, semiconductor / micro-chips, camera, photographic equipments, birdnest, ginseng, sharkfin, abalon ii) Medical Hall, Bank, Public/Freight Forwarder's warehouse. iii) Moral hazard doubtful. iv) Proposer who does not keep stock records and is unwilling to implement such system. v) Contents of residence. vi) Risks in buildings of Class 3. vii) Risks which have suffered losses. viii) Risks which are in neglected area or in slums. ix) Theft prone, remote, new areas. |
SECURITIES MEASURED
REQUIREMENTS
i) All entrance(s) and exit(s) to be double layers.
ii) All openings e.g., window, entrance, exit, roof, air well should be secured by iron grilles.
iii) Metal plates or grille or sensor should be installed to the rubbish chute.
iv) All doors should be secured by good quality padlocks.
v) Front and rear to be lighted at night.
vi) Premises should be protected by a Burglar Alarm System of a reputable brand and installed by reputable Company.
vii) Contact Breakers at all entrances and exits. Motion sensors at stock areas.
viii) The Alarm system should be linked to a reliable Central Monitoring System (CMS) provider back up by GSM line (wireless).
ix) The Insured should subscribe to a response team service.
x) Security guard should be engaged to patrol, during the night, weekends and public holidays.
All security guards should be middle-aged (25-45), well-built and trained
Security guards should be provided with tele-communication equipment for emergency contact purposes
i) All entrance(s) and exit(s) to be double layers.
ii) All openings e.g., window, entrance, exit, roof, air well should be secured by iron grilles.
iii) Metal plates or grille or sensor should be installed to the rubbish chute.
iv) All doors should be secured by good quality padlocks.
v) Front and rear to be lighted at night.
vi) Premises should be protected by a Burglar Alarm System of a reputable brand and installed by reputable Company.
vii) Contact Breakers at all entrances and exits. Motion sensors at stock areas.
viii) The Alarm system should be linked to a reliable Central Monitoring System (CMS) provider back up by GSM line (wireless).
ix) The Insured should subscribe to a response team service.
x) Security guard should be engaged to patrol, during the night, weekends and public holidays.
All security guards should be middle-aged (25-45), well-built and trained
Security guards should be provided with tele-communication equipment for emergency contact purposes
If stocks are highly
attractive (High Hazard) or the risk is located in an isolated area,
armed security guards with guard's dogs should be employed.
For High
Hazard goods with high sum insured, reinforced guard house with panic
button should be provided with at least one security guards stationed
inside at all times.
Arrangements should be made with the Police and/or Security Company to carry out random patrolling at night.
SURVEY GUIDELINE
Referred Risks
Sum Insured of RM 750,000.00 and below, to be surveyed by branch.
Sum Insured above RM 750,000.00, to be surveyed by Head Office.
Arrangements should be made with the Police and/or Security Company to carry out random patrolling at night.
SURVEY GUIDELINE
Referred Risks
Sum Insured of RM 750,000.00 and below, to be surveyed by branch.
Sum Insured above RM 750,000.00, to be surveyed by Head Office.
Non-referred Risks
Sum Insured of RM 1,000,000.00 and below, to be surveyed by branch.
Sum Insured above RM 1,000,000.00, to be surveyed by Head Office.
Sum Insured RM 150,000.00 and below, not necessary to be survey if the risk is protected by Burglar alarm system or guarded by security guard.
The following diagram illustrates the major components of burglary risk assessment:
Burglary survey should stimulate action to reduce loss potential, and provide a record of the findings and actions resulting from the survey.
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Sum Insured of RM 1,000,000.00 and below, to be surveyed by branch.
Sum Insured above RM 1,000,000.00, to be surveyed by Head Office.
Sum Insured RM 150,000.00 and below, not necessary to be survey if the risk is protected by Burglar alarm system or guarded by security guard.
The following diagram illustrates the major components of burglary risk assessment:
Burglary survey should stimulate action to reduce loss potential, and provide a record of the findings and actions resulting from the survey.
CLAIMS:
BURGLARY CLAIMS
1. Police report
2. Photographs of premises where entry is gained into
3. Repair / Replacement bills for damages to premises (For details of the survey process, kindly refer to the FireRisk Survey section.)
4. Purchase invoices (for stock)
5. Stock Cards
6. Claim Form
1. Police report
2. Photographs of premises where entry is gained into
3. Repair / Replacement bills for damages to premises (For details of the survey process, kindly refer to the FireRisk Survey section.)
4. Purchase invoices (for stock)
5. Stock Cards
6. Claim Form
Saturday December 13, 2008
RM47m Intel heist solved
By ANDREA FILMER
The programmes for next year would be announced by Penang CPO Datuk Wira Ayub Yaakob soon, he added.