Fire Insurance Clauses

Based on the Malaysian Revised Fire Tariff (RFT), there are easily 40 clauses available for use in the Fire Insurance Policy.

Technically, there are 3 categories of Clauses.

1st Category (Premium is charged on inception)

• Escalation Clause (to cater to the subsequent appreciation in value of the subject matter)
• Public Authority Clause (by topping up the SI to cater to the requiremnent of new building by-laws etc)
• Removal of Debris Clause (by topping up the SI to cater to the cost of removing the debris or insured as a separate item)
• Architect , Surveyor & Consultant Fees (by topping up the SI to cater to all professional fees incurred or insured as a separate item)
• Reinstatement Value Clause (by topping up the SI to cater to further increase in the reconstruction cost)
• Contract Price Clause (by topping up the SI to cater to the profit margin for goods manufactured but not delivered)
• Outbuildings Clause (by topping up the SI to cater to ancilliaries like fences, gates, guard post etc)

2nd Category (Premium is charged /refundable upon declaration)

• Capital Addition Clause with minimum SI RM 1.5Mil (declaration to be made within 3 months)
• Stock Declaration Clause (monthly declaration)
• Reinstatement Value-Day One (declaration at the end of 12 months)
• Internal Removal Clause (retospective from the date of removal or oversight)

3rd Category (Free of Charge)

• Other Contents Clause (Limit RM1,000)
• Designation Clause
• Appraisement Clause (5% of SI or RM5,000 the lower of)
• Temporary Removal Clause
• Temporary Storage Clause (Limit RM500,000 up to 60 days)
• Alteration & Repair Clause
• Mortgagee Clause / Automatic Renewal Clause
• Hire Purchase Clause
• Computer Systems Records Clause
• Vehicle Load Clause