Lessons On Insurance To Be Learnt From USJ Putra Heights Gas Pipeline Explosion

Barnama

5 hours ago

BUSINESS
KUALA LUMPUR, June 25 (Bernama) -- It's been about three months since the devastating gas pipeline explosion and fire at USJ Putra Heights. Fortunately, there were no fatalities. It shocked Malaysians. Questions are still being asked as to the compensation for damages to houses, properties, possessions and injuries sustained.
Puneet Pasricha (Pasha), the Chief Executive Officer of Liberty General Insurance Bhd, responds to questions posed by BERNAMA on the lessons to be learnt from the incident.They include such topics as homeowners' and houseowner's insurance policies, eligibility for claims, types of policies available in Malaysia to insure against property damage and related issues. Herewith the details of the responses in question-and-answer format.
1. What are the lessons to be learnt from homeowners affected by the pipeline explosion at Putra Heights. Are Malaysian homeowners sufficiently protected? The Putra Heights incident is a stark reminder of how unexpected disasters can cause devastating loss. It highlights the importance of adequate insurance protection—not just for vehicles, but also for homes and businesses. Sadly, it also exposes a harsh reality: many Malaysian homeowners are either underinsured or unaware of the extent of protection they truly need.
There are a few factors that Malaysian homeowners need to be aware of:
Potential Hazards: Homeowners need to be aware of the infrastructure surrounding their properties, including pipelines, power lines, and other utilities. While these types of incidents are rare, understanding potential risks is the first step towards preparedness.
Comprehensive Insurance: There is now a critical need for broader coverage, as many affected homeowners may only have basic fire insurance which might not cover damages from explosions or related perils.
Policy Scope: Homeowners should periodically review their insurance policies to ensure they adequately cover potential risks relevant to their location and circumstances.
Emergency Preparedness: Having an emergency plan in place, including knowing evacuation routes, and having essential documents readily accessible, is crucial during unforeseen events.
2. What specific homeowners' household insurance policies are required before they can claim for damages? To be eligible for claims, homeowners must have either a Houseowner policy, which covers the structure of the building, or a Householder policy, which protects contents inside the home. Both are essential in providing full protection against events such as explosions, fires, and other crises.
However, there needs to be greater awareness and adoption of more comprehensive policies. While basic fire insurance is relatively common due to mortgage requirements, comprehensive homeowner's insurance that covers a wider range of crises might not be as prevalent.
3. Can you provide some details of the various houseowners and householder insurance policies available in the Malaysian market? What about damage to condominium units in case of fire? The Malaysian insurance market offers various houseowners and householders insurance policies designed to protect against a range of risks.
At Liberty General Insurance, our Houseowner policy covers:
Disaster Relief: Covers the building against all natural perils including fire, lightning, windstorm, earthquake, and floods.
Sudden Impact: Covers loss or damage to your building due to damages caused by aircrafts, road vehicles and animals, as well as domestic gas explosions.
Unforeseen Perils: Protects your house against damages incurred by bursting or overflowing water tanks or pipes, theft or rental loss.
Add on Benefits: Invest in additional protection against subsidence, landslip, riot, strike, malicious damage, and liabilities to third parties for accidents in your house.
Regarding damage to condominium units in case of fire, the master building insurance policy held by the Management Corporation typically covers the structure of the entire building, including the external walls, roof, and common areas.
However, individual unit owners usually need their own householder's insurance to cover the assets below, which Liberty General Insurance also offers: Furniture & Household Goods Electrical Appliances & Kitchen Equipment Clothing, Personal Effects & Valuables Add on Benefits for additional protection against damage to lock and keys, loss of cash, jewellery, gold & silver articles, breakage of mirror, fatal insurance, rental losses, public liability, and full theft
It is crucial for condominium owners to understand the scope of the master policy and their own individual insurance needs.
4. Also, can you explain what are the components of the add-on's protection for houses? Homeowners need to ensure adequate protection against a wider range of potential disasters. Consider more comprehensive policies with higher sum insured amounts and broader peril coverage.
Add-on protection for houses can provide supplementary coverage beyond what is typically included in a standard houseowner's or householder's insurance policy. Common components of add-on protection include:
All Risks Coverage: This provides broader protection against accidental loss or damage to the building and/or contents, except for specifically excluded perils.
Natural Disasters Coverage: This can include protection against perils like floods, earthquakes, landslides, and windstorms, which are often excluded from standard policies. Given Malaysia's vulnerability to floods, this is a crucial add-on for many homeowners.
Liability Coverage: This protects the homeowner against legal liability if someone is injured on their property.
By opting for relevant add-ons, homeowners can tailor their insurance coverage to their specific needs and the risks they face.
5. Can you provide some details of the houseowner and householder insurance policies that you offer? At Liberty General Insurance, we aim to provide flexible and comprehensive solutions to meet the needs of Malaysian homeowners. Our key offerings for Houseowners include:
Disaster Relief: Covers the building against all natural perils including fire, lightning, windstorm, earthquake and floods.
Sudden Impact: Covers loss or damage to your building due to damages caused by aircrafts, road vehicles and animals, as well as domestic gas explosions.
Unforeseen Perils: Protects your house against damages incurred by bursting or overflowing water tanks or pipes, theft or rental loss.
Our policies also offer various add-on options to further enhance protection, such as protection against subsidence, landslip, riot, strike, malicious damage, and liabilities to third parties for accidents in your house.
As for Householders, we cover: Furniture & Household Goods: Ensure that the heart of your home is always secure with a policy that covers your home's furniture and goods. Electrical Appliances & Kitchen Equipment: Go ahead and splurge on that fancy coffee machine you always wanted, secure in the knowledge that your appliances are protected. Clothing, Personal Effects & Valuables: Your personal effects and valuables are a part of your persona, and are irreplaceable. Ensure they are protected at all times. Add on Benefits: Invest in additional protection against subsidence, landslip, riot, strike, malicious damage, and liabilities to third parties for accidents in your house.
6. What are the necessary procedures that need to be fulfilled before one can apply for damages such as in the gas explosion? Basically, what are the do's and don'ts? In the unfortunate event of damage such as a gas explosion, here are some necessary procedures to follow before applying for insurance claims:
Do's: Report the Incident: As soon as you are safe to do so, report the incident to the police and other authorities like the relevant gas company if it was a gas-related incident. Obtain a copy of the police report if possible. Notify Your Insurer Immediately: Contact Liberty General Insurance or your insurer as soon as possible to inform us about the incident. Provide us with initial details of what happened and the extent of the damage. Document the Damage: Take clear photographs and videos of all the damage to your property and belongings. This documentation will be crucial for the claims assessment process. Preserve Damaged Property: Keep damaged items for inspection. However, avoid making permanent repairs before our adjuster has had a chance to assess the damage, unless temporary repairs are necessary to prevent further loss—like covering a damaged roof to prevent rain damage. Cooperate with the Adjuster: Our appointed loss adjuster will visit your property to assess the damage. Provide them with all the necessary information and access they require. Keep Records of Expenses: If your policy covers additional living expenses, keep records of any necessary costs incurred due to being displaced from your home—including hotel bills and food expenses. Read Your Policy: Familiarise yourself with the terms and conditions of your insurance policy to understand your rights and obligations. Don'ts: Do Not Tamper with Evidence: Avoid moving or cleaning up the damaged area before taking photographs and before the adjuster's inspection, unless it's necessary for safety. Do Not Make Exaggerated Claims: Be honest and accurate in your claim. Exaggerating the extent of the damage or the value of lost items can jeopardise your claim. Do Not Delay Reporting: Delaying the notification to your insurer can complicate the claims process. Do Not Dispose of Damaged Items Prematurely: Keep damaged items until the adjuster has inspected them or advised you otherwise. Do Not Admit Liability: If the incident involves third-party damage or injury, do not admit liability. Refer all inquiries to your insurer. Do Not Make Permanent Repairs Without Authorisation: Unless it is for essential temporary measures, avoid making permanent repairs before the adjuster has assessed the damage and provided authorisation.