PrOrumah Policy Document

Applicable for Consumer Insurance Contracts 

This Policy is issued in consideration of the payment of Premium as specified in the Policy Schedule and pursuant to the answers given in Proposal Form (or when You applied for this insurance) and any other disclosures made by You between the time of submission of Proposal Form (or when You applied for this insurance) and the time this contract is entered into. The answers and any other disclosures given by You shall form part of this contract of insurance between You and Us. However, in the event of any pre-contractual misrepresentation made in relation to answers or in any disclosures given by You, only the remedies in Schedule 9 of the Financial Services Act 2013 will apply. 

This Policy reflects the terms and conditions of the contract of insurance as agreed between You and Us.

Applicable for Non-Consumer Insurance Contracts 

This Policy is issued in consideration of the payment of Premium as specified in the Policy Schedule and pursuant to the answers given in the Insured’s Proposal Form (or when the Insured applied for this insurance) and any other disclosures made by the Insured between the time of submission of the Insured’s Proposal Form (or when the Insured applied for this insurance) and the time this contract is entered into. The answers and any other disclosures given by the Insured shall form part of this contract of insurance between the Insured and PACIFIC & ORIENT INSURANCE CO. BERHAD. (hereinafter called “the Company”). In the event of any pre-contractual misrepresentation made in relation to the Insured’s answers or in any disclosures made by the Insured, it may result in avoidance of the Insured’s contract of insurance, refusal or reduction of the Insured’s claim(s), change of terms or termination of the Insured’s contract of insurance. 

This Policy reflects the terms and conditions of the contract of insurance as agreed between the Insured and the Company.

Insurance does not cover You against everything that can happen. 

Please read Your Policy carefully to make sure You understand what it covers, the terms and conditions applicable and make sure You are satisfied with this insurance. 

The heading does not form part of the policy wording. 

The Policy, Schedule and Endorsements must be read together as they form Your insurance contract. 

This Policy sets out what You are insured for as shown on the Schedule and the circumstances where You are not protected or covered. 

Some words and expressions have been printed out in bold because they have been given specific meaning in the Policy.

You will find their meaning in the Glossary. 

The coverage provided under this Policy is subject to You fully observing and fulfilling the terms, provisions, Endorsements and clauses of the Policy.

Duty of Disclosure 

Applicable for Consumer Insurance Contracts 

Where You have applied for this Insurance wholly for purposes unrelated to Your trade, business or profession, You have a duty to take reasonable care not to make a misrepresentation in answering the questions in the Proposal Form (or when You applied for this insurance) i.e. You should have answered the questions fully and accurately. Failure to have taken reasonable care in answering the questions may result in avoidance of Your contract of insurance, refusal or reduction of Your claim(s), change of terms or termination of Your contract of insurance in accordance with the remedies in Schedule 9 of the Financial Services Act 2013. 

You are also required to disclose any other matter that You knew to be relevant to Our decision in accepting the risks and determining the rates and terms to be applied. 

You also have a duty to tell Us immediately if at any time after Your contract of insurance has been entered into, varied or renewed with Us any of the information given in the Proposal Form (or when You applied for this insurance) is inaccurate or has changed.

Applicable for Non-Consumer Insurance Contracts 

Where You have applied for this Insurance wholly for purposes related to Your trade, business or profession, You have a duty to disclose any matter that You know to be relevant to Our decision in accepting the risks and determining the rates and terms to be applied and any matter a reasonable person in the circumstances could be expected to know to be relevant otherwise it may result in avoidance of Your contract of insurance, refusal or reduction of Your claim(s), change of terms or termination of Your contract of insurance. 

You also have a duty to tell Us immediately if at any time after Your contract of insurance has been entered into, varied or renewed with Us any of the information given in the Proposal Form (or when You applied for this insurance) is inaccurate or has changed. 

Notice of Other Insurances 

You must inform Us of any other insurance that You have bought at the time of purchasing this insurance, and also during the period of this insurance, covering any of the same property insured under this Policy. 

Such notice should be given and endorsed by Us in this Policy before the Occurrence of any loss or damage.

We will insure the Buildings and/or Contents as shown on Your Schedule during the Period of Insurance. 

This cover will be given on the basis that You agree to pay Us the Premium for the cover. 

In respect of Insured Events occurring during the Period of Insurance and subject to the limitations, exceptions and conditions contained or endorsed in the Policy, We will, by payment or by reinstatement or repair, indemnify You against loss or damage to the property insured as mentioned in the Schedule. 

This Policy insures You up to the amount of the Sum Insured as stated in the Schedule for loss or damage to Your Buildings and/or Your Contents caused by an Insured Event. 

Your Schedule will show if You have insured Your Building, Your Contents or both.

Your Building 

“Buildings” means buildings of a Private Dwelling House at the Premises and includes:

• all domestic offices, stables; 
• garages and outbuildings on the same Premises used solely in connection to it and on the same Premises; 
• Fixtures and Fittings; 
• walls, gates and fences around the Premises. 

Private Dwelling House shall also refer to buildings of Flats and Apartments. 

When Blocks of Flats or Apartments are insured, Private Dwelling House will refer to the Private Flats or Apartments. 

Your Contents 

“Contents” means Household goods and Personal Effects of every description, belonging to You or any member of Your Family normally residing with You contained in the Private Dwelling House, Flat or Apartment and all domestic offices, stables, garages and out-buildings, used solely in connection to it, on the same Premises specified on the Schedule.

This Policy is subject to the following Warranties: 

Restriction of Merchandise Warranty 

No part of the Premises should be used for the manufacture or deposit or storage of merchandise during the Period of Insurance. 

Premium Warranty 

Premium due to Us must be paid and received by Us within sixty (60) days from the inception date of this Policy / Endorsement / renewal certificate. 

If the condition is not complied with, this contract shall be automatically cancelled and We shall be entitled to the pro-rated Premium for the period We provide the cover. 

Where the Premium payable is received by Our authorised agent, the payment is deemed to be received by Us for the purposes of this Warranty. 

The onus of proving that the Premium payable was received by a person, including an insurance agent who was not authorised to receive such Premium, shall lie with Us.

This refers to additional benefits provided to You without any additional Premium, but which are subject to the terms and conditions of the Policy.  

You will not be covered under the following circumstances: 

General Exception 1 

We will not cover loss or damage or other contingency caused directly or indirectly by: 

a) War, invasion, act of foreign enemy, hostilities, or warlike operations (whether war be declared or not), civil war; 

b) Mutiny, riot, military or popular uprising, insurrection, rebellion, revolution, military or usurped power, martial law or state of siege or any of the events or causes which determine the proclamation or maintenance of martial law or state of siege; 

c) Any act of terrorism. For this purpose an act of terrorism means an act, including but not limited to the use of force or violence and/or the threat thereof, of any person or groups of persons, whether acting alone or on behalf of or in connection with any organisations or governments, committed for political, religious, ideological or similar purposes including the intention to influence any government and/or to put the public or any section of the public in fear. 

Any loss or damage or other contingency happening during the existence of abnormal conditions (whether physical or otherwise) which are caused directly or indirectly, of any of the said Occurrences shall be deemed to be loss, damage or a contingency which is not covered by this insurance. You have to prove that such loss, damage or other contingency happened independently of the existence of such abnormal conditions. 

In any action, suit or other proceedings, where We alleges that by reason of the provisions of this Condition any loss or damage is not covered by this insurance , the burden of proving that such loss or damage is covered shall be upon You.

General Exception 2 

We will not cover loss or damage: 

a) caused by cessation of work, or by confiscation, commandeering, requisition or destruction of or damage to the property by order of the Government de jure or de facto or any Public Municipal or Local Authority of the country or area in which the property is situated; 

b) to property by its own fermentation, natural heating or spontaneous combustion or by its undergoing any heating or drying process; 

c) arising from or in consequence of or contributed to by nuclear weapons material; 

d) arising from or in consequence of or contributed to by ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel. Solely for this purpose, combustion shall include any self-sustaining process of nuclear fission. 

General Exception 3 

We will not cover Consequential Loss or damage of any kind except Rent Insurance.

Insurable Interest 

Only You have rights to claim from Us, except upon Your death, or by operation of law, the passing of interest of this insurance to another person shall only take effect after We have endorsed the Policy.

No Right of Claim from Any Other Person 

Whilst the Policy insures property of Your Family or domestic servant, only You can make a claim on their behalf. 

Limit to Three (3) Paying Guests only 

This Policy is valid if the number of paying guests, boarders and lodgers does not exceed three (3) persons. For the purposes of Additional Benefit – I) Liability to the Public, these persons are deemed to be members of Your Household. 

Market Value 

We will indemnify You the insured value or the market value of the insured property whichever is lower subject to the deduction of any Excess. Market value means the value of the property insured at the time of loss or damage less allowance for Wear and Tear and/or Depreciation. The market value shall be determined by a valuation obtained by Us from the: 

• manufacturer, or 
• authorised sole agent or agent, or
• authorised broker, authorised distributor, or 
• building contractor, or 
• loss adjuster registered under the Financial Services Act 2013, or 
• Registered Valuer under the Valuers, Appraisers and Estate Agents Act 1981 to be mutually appointed by both You and Us. 

The valuation so obtained shall be conclusive in any legal proceedings against Us.

Our Maximum Liability 

Our total liability to You in respect of loss or damage during any one Period of Insurance will not exceed the amount stated against each item or in the aggregate, the Total Sum Insured specified on the Schedule or such other sum or sums endorsed in this Policy. 

Average 

If the market value of the property insured at the time of any loss is collectively of higher value than the Sum Insured stated in the Schedule, then You will be responsible for the difference and bear a proportional share of the loss. The sharing of proportional loss will apply separately to each item insured. 

Excess 

For loss or damage (except by fire) to the Buildings of the Private Dwelling House by any Insured Event where Excess applies, Excess shall separately apply to: 

a) each building. All insured Buildings at the same Premises stated in the Schedule are considered as one building. 

b) each incident. If the same Insured Event occurs within seven (7) consecutive days, it is considered the same incident. 

Other Insurance 

If there are any other policies covering the same or part of the same loss, damage or liability, We will only pay a share of the total loss, damage or liability proportionally.

Subrogation 

We are entitled to undertake in Your name and on Your behalf:

• the full conduct, control and settlement of any proceedings;
• recover compensation or secure Indemnity from any third party in respect of anything covered by this Policy. at Our own expense and benefit. 

Fraud 

We will not pay if Your claim is in any way fraudulent by You or persons acting on Your behalf. 

Right of Access and Control 

On the happening of any loss or damage We are entitled to: 

• enter any building where the loss or damage has happened; 
• take and keep possession of the insured property; 
• deal with the salvage of the damaged insured property. 

However, You shall not abandon the damaged insured property to Us.

Arbitration 

Any difference on the amount of any loss of damage between You and Us shall be referred to an arbitrator who shall be appointed in writing by You and Us. In case You and Us are unable to agree on a single Arbitrator, within two months of being required in writing to do so by either party, then You and Us shall be entitled to appoint an Arbitrator each who shall appoint an Umpire to preside over their meetings. However, one party is at liberty to appoint a sole Arbitrator, should the other party within two months of the written notice fail to appoint the other Arbitrator. The costs of arbitration and awards shall be decided by the Arbitrator, Arbitrators or Umpire. You and Us clearly agree that the awards by the Arbitrator, Arbitrators or Umpire shall be obtained first before You can commence legal proceedings on Us.

Notice and Proof of Claim 

You must immediately notify in writing to Us of any loss or damage and: 

• at Your own expense and within 30 days after the incident, deliver to Us a claim in writing with detailed particulars and proofs as We may reasonably require; 
• for loss or damage by theft or attempted theft, You must immediately make a Police report. 

Building Plans 

If We elect to reinstate any building, You must furnish Us plans, specifications and quantities as We may reasonably require. 

Liability Claims 

You shall upon receiving any notice of any accident or claim from other parties, give Us immediate notice in writing and as soon as possible supply Us full particulars in writing. You shall send to Us immediately any writ, summons or other legal process issued or commenced against You and provide all necessary information and assistance to enable Us to settle or resist any claim or institute proceedings. 

You shall not without Our written consent: 

• admit or repudiate any claim or liability; 
• offer or negotiate to pay a claim.

Duty of care 

You shall use all reasonable diligence and care to keep the Premises in proper state of repair. As owner of the Private Dwelling, You shall made good as soon as possible any defect discovered and shall, in the mean time, take additional precautions to prevent injury, loss or damage. We will not be liable for any injury, loss or damage caused by You failing to remedy such defect after receiving notice from Us or from any person or public body. 

Reinstatement of Sum Insured 

After a loss, the full Sum Insured of this insurance shall be maintained. You are required to pay an additional pro rata Premium based on the amount of loss calculated from the date of loss to the expiry date of insurance. 

Unvalued Policy Clause 

This is an unvalued Policy. You must prove to the satisfaction of the Company the value of the property at the time of the happening of its destruction or the amount of such damage.

You may cancel this Policy at any time by giving Us notice in writing. You shall be entitled to a refund of Premium after We have charged You based on Our Customary Short-period Rates or minimum Premium payable under the Policy, whichever is higher. 

We may also cancel this Policy at any time by giving You seven days’ notice in writing and will refund the pro rata Premium equal to the unexpired Period of Insurance.

Some words and expressions in this Policy have a specific meaning which is given below. Each word is printed in bold where it appears. 

“Consequential loss” means financial loss. 

“Consumer Insurance Contracts” means insurance wholly for purposes unrelated to the Insured’s trade, business or profession. 

“Depreciation” means the reduction in the value of the item or property due to Wear and Tear. 

“Endorsement” means a written alteration to the terms, conditions and limitations of this Policy which is shown on the Schedule. 

“Erosion” means being worn or washed away by water or wind. 

“Excess” means the amount You must pay towards a claim before We pay. The amount will be stated on the Schedule or in any selected Optional Benefits. 

“Flood” means the overflowing or deviation from their normal channels of either natural or artificial water courses, bursting or overflowing of public water mains and any other flow or accumulation of water originating from outside the building. 

“Family” and “Household” means any person(s) who normally reside with You. 

“Fixtures” and “Fittings” means items that are permanently attached to Your Building.

“Indemnity” means putting You back to Your same financial position immediately before the loss. 

“Insured Event” means one of the perils listed under this Policy. 

“Non-Consumer Insurance Contracts” means insurance for purposes related to the Insured’s trade, business or profession. 

“Occurrence” means the exact period when the incident took place. 

“Open” means anywhere at the Premises not fully enclosed by walls and a roof and which is not able to be Secured, also any outbuildings on the Premises if such Buildings are not able to be Secured. 

“Period of Insurance” means the period for which You are insured. It commences at the time We agree to give You insurance and finishes at midnight on the day of expiry. The expiry date is shown on the Schedule.

“Personal Effects” means personal items regularly worn or carried on the person for his/her personal use, for example clothing, watch, wallet. 

“Plate Glass” means glass fitted to the structure of the building.

“Policy” means Your insurance contract which consists of this policy wording and Schedule. 

“Premium” means any amount We require You to pay under the Policy and includes Government charges. 

“Premises” means the land at the address shown on the Schedule on which the building is built, including the yard or garden used only for domestic purposes. 

“Robbery and hold up” means that the items insured are either taken away or surrended; in both instances due to force, menaces or threat of physical violence made against You, or persons living with You in a common household, or other persons authorized to be on Your premises. 

"Schedule” means the Policy Schedule where both the insured items and sum insured are specified. 

“Secured” means locked so as to prevent entry other than by using force.

“Sum insured” means the amount You have insured on either Your Building, Your contents (including specified Contents) as shown on the Schedule. This shall include the Additional Benefits and any of the Optional Benefits selected by You. 

“Customary short-period rates” means the following:

“Warranties” means either restriction or obligation that the Policy imposes on You. A breach of a warranty will entitle Us to reject the claim for loss or damage or liability. 

“Wear and tear” means damage or a reduction in value through age, ordinary use or lack of maintenance. 

“We, Our and Us” means the insurance company. 

“You and Your” means the person(s) named on the Schedule as the insured.

For an additional Premium, Your Policy may be extended to cover the following benefits to the insured Buildings and/or Contents. These optional benefits will be stated on the Schedule if You choose to take these up.  

NOTICE 

For all intents and purposes where there is a conflict or ambiguity as to the meaning in the Bahasa Malaysia provisions of any part of the Contract, it is hereby agreed that the English version of the Contract shall prevail.