FIRE INSURANCE

Study on Catastrophe Risks Exposures
As a further development on this study, the Fire Sub-committee is currently looking at the data that is available in the ISM database with particular attention to flood and earthquake/tsunami risks.

The Fire Sub-committee hopes to ultimately build up a comprehensive industry database on catastrophe risks and thereafter be able to develop an appropriate risk model that will best suit the needs of Malaysian insurers on catastrophe risks exposures.

Proposed Long Term Fire Insurance
Currently, insurers are not allowed to issue long-term fire insurance under the Fire Tariff. Due to demand for this type of insurance and also to remain competitive in the market, the Fire Sub-committee has drawn up a proposed Long Term Fire Insurance (LTFI) to allow insurers to underwrite this type of insurance for consideration by members.

Infectious or Contagious Diseases etc, Prevention of Access and Customers' and Suppliers' Extension Covers
Currently, the Fire Tariff requires a sub-limit of 10% of the sum insured or RM10 million, whichever is the lower, to be imposed for the extensions under the Consequential Loss Insurance Policy for Infectious or Contagious Diseases, Murder, Suicide, Pest, Food or Drink Poisoning or Defective Sanitary Arrangements cover, Prevention of Access and Customers' and Suppliers extension covers.

With effect from 10th December 2007, member companies are allowed to vary the existing sub-limit to be imposed for the above-mentioned extension covers subject to availability of capacity from their treaty reinsurers.

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