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HSBC Amanah Takaful (Malaysia) Berhad
(Company No. 731530-M)
CERTIFICATE
HOMEOWNER
Please read this Certificate carefully.
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Table of Contents
A. Certificate Information Statement ................................................................................... 4 B. General Provisions ............................................................................................................. 5 C. Contributions & Fees ......................................................................................................... 9
D. Funds ................................................................................................................................... 9 E. Benefits .............................................................................................................................. 10 F. Risk Exclusions ................................................................................................................. 13 G. How to make a claim?...................................................................................................... 14
H. How We will settle Your claim? ..................................................................................... 14 I. Clauses - Applicable only if specified in the Schedule ..................................................... 15 J. Optional Benefits - Applicable only if specified in the Schedule ..................................... 18
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This is a General Takaful plan managed by HSBC Amanah Takaful (Malaysia) Berhad.
Takaful is a mutual assistance scheme based on the spirit of brotherhood and solidarity where participants like you
agree to assist each other financially in case of certain defined needs. A portion of your contribution will be
deposited into the General Risk Fund on the basis of Tabarru’ (donation) (from here onwards referred to as “the
General Takaful Plan”).
This General Takaful Plan is managed in accordance with the Shariah principles guided by our Shariah Committee.
In consideration of your participation and contribution, we agree to manage this General Takaful Plan based on the
terms, conditions and benefits as stated in this Certificate. Any variations or changes to the terms of this Certificate
shall be effective upon our endorsement. The relationship between all participants and HSBC Amanah Takaful
(Malaysia) Berhad is governed by this Certificate on Wakalah basis.
This Certificate describes the terms of this plan in full. Please read this certificate carefully to ensure that it meets
your requirements.
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A. Certificate Information Statement
1. You may make your contribution:
1.1 at our Head Office located on the 8th Floor, North Tower, No. 2 Leboh Ampang, 50100 Kuala Lumpur;
1.2 at any branch of HSBC Bank Malaysia Berhad or HSBC Amanah Berhad (“HSBC Bank”); or
1.3 by credit card or auto debit - arrangement for this can be made at any HSBC Bank branch.
2. You may decline this Certificate by returning it to us within 15 days from the date of delivery of this Certificate
to your last known address that was notified to us (“cooling off period”). If you do so, this Certificate will be
terminated and refund of contribution paid (if any) will be made.
3. You may cancel this Certificate at any time by giving Us notice in writing. The amount to be refunded upon
cancellation of the Certificate shall be subject to the minimum Contribution to be retained by Us. We may also
cancel this Certificate at any time by giving You seven (7) days’ notice in writing and will refund the pro rata
Contribution equal to the unexpired period of Takaful.
4. You have to inform us and provide us with the relevant documents immediately to ensure our services to you
are not interrupted if there is any change in your address or contact number.
5. 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.
6. You must immediately write and tell Us about any change that could affect this Takaful arrangement. If You
do not tell us about any change to a material fact, this Takaful arrangement will no longer be valid. Material
facts are facts which might influence Our decision to cover You, or the terms of the Takaful arrangement. If
You are not sure whether a fact is material, You should consult Us.
In particular You must tell Us:
If the Buiding is used for business, to manufacture, deposit or store merchandise;
Of any convictions or prosecutions, (other than for motoring offences) relating to You or Your Family;
Of any changes to the Building that will increase the rebuilding cost;
If you leave the Buidling unoccupied for more than 90 days whether consecutively or not in any one period
of Takaful
7. If You wish to seek any further information, enquire, provide feedback or dispute regarding our decisions made
under this Certificate, we can be reached at:
HSBC Amanah Takaful (Malaysia) Berhad Complaints Unit
P.O. Box 13343, 50806 Kuala Lumpur
Tel: 1-800-88-9659 Fax: 03-2031 0833
8. Any dispute relating to this Certificate involving amounts equal to or not exceeding RM100,000.00 shall be
referred to the Financial Mediation Bureau (“FMB”) for settlement.
9. If You are not satisfied with the decision of the FMB or if You and Us are not able to agree on matter
relating to this Certificate involving amounts exceeding RM100,000.00, an Arbitrator shall be appointed
by You and Us in writing to resolve this disagreement. If You and Us are not able to agree on who is to be the
Arbitrator within one month of being required to do so then You and We shall be entitled to appoint an
Arbitrator each. Both Arbitrators shall then proceed to hear the disagreement together with an Umpire to be
appointed by them.
10. BNMLINK, BNMTELELINK and the Financial Mediation Bureau are set up to offer consumer protection for
participants to resolve disputes over claims settlement between the Takaful Operator and participants. Should
there be any dispute over claims settlement arising from this Certificate, you may wish to contact and write to
the following parties:
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10.1 BNMLINK provides face-to-face customer service to walk-in visitors on general enquiries and
public complaints. BNMLINK is located at Bank Negara Malaysia’s regional offices and the
main office is:
BNMLINK
Bank Negara Malaysia
Block D, Jalan Dato’ Onn
50480 Kuala Lumpur.
10.2 Alternatively, you may contact BNMTELELINK by telephone, fax, letter or email with contact
details as follows:
BNMTELELINK
Jabatan Komunikasi Korporat
Bank Negara Malaysia
P.O. Box 10922
50929 Kuala Lumpur
Tel: 1-300-88-5465 (LINK) Fax: 03-2174 1515
E-mail: bnmtelelink@bnm.gov.my
BNMLINK and BNMTELELINK operating hours are from: Monday – Friday, 9.00 a.m. – 5.00 p.m.
10.3 The Financial Mediation Bureau (“FMB”)
25th Floor, Dataran Kewangan Darul Takaful
No. 4, Jalan Sultan Sulaiman
50000 Kuala Lumpur;
Tel: 03-2272 2811 Fax: 03-2274 5752
B. General Provisions
1. Meanings and Definitions
To help you understand Your Certificate, the following words and phrases listed below will have the same
meaning wherever they appear in this Takaful:
“Benefits” means the amount covered, for each covered event as shown in Schedule.
“Building” means building of a Private Dwelling House at the premises and includes:
all domestic offices, stables;
garages and outbuilding 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 Building of Flats and Apartments.
When Blocks of Flats or Apartments are covered, Private Dwelling House will refer to the Private Flats or
Apartments.
“Certificate” means Your Takaful contract which consists of this Certificate wording and Schedule.
“Commencement Date” means the Commencement Date stated in the Schedule and is the date on which the
coverage under this Certificate commences.
“Contribution” means any amount We require You to pay under the Certificate and includes Government
charges.
“Consequential loss” means financial loss.
“Covered event” means one of the perils listed under this Certificate.
“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 Certificate which is
shown on the Schedule.
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“Excess” means the amount You must pay towards a claim before We pay.
“Family” and “Household” means any person(s) who normally reside with You.
“Fixtures” and “Fittings” means items that are permanently attached to Your building.
“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.
“General Risk Fund” means the risk fund managed by us for the purposes of this Certificate. It is for the
collective benefit and protection of all its participants through the principles of Takaful.
“Incident” means any event which might lead to a claim.
“Indemnity” means putting You back to Your same financial position immediately before the loss.
“Occurrence” means the exact period when the Covered Event 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 out Building on the premises if such Building are not able to be secured.
“Participant” means the person named as the participant in the Schedule. Only the Participant can exercise all
rights, privileges and options provided under this Certificate.
“Period of Takaful” means the period for which You are covered. It commences at the time We agree to give
You Takaful and finishes at midnight on the day of expiry. The expiry date is shown on the Schedule.
“Personal Information” means all information you provide to us and shall include, but shall not be limited to,
your personal details and details of transactions with or through us whether within or outside Malaysia
involving any party.
“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.
“Secured” means locked so as to prevent entry other than by using force.
“Sum Covered” means the amount You have covered 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.
“Tabarru’” means donation, gift or contribution. In this Certificate, Tabarru’ means donation for the purposes
of Takaful.
“Takaful” means a scheme based on brotherhood, solidarity and mutual assistance which provides for mutual
financial aid and assistance to participants of a scheme in case of need whereby the participants mutually agree
to contribute for that purpose.
“Takaful Operator”, “we”, “our” or “us” refers to HSBC Amanah Takaful (Malaysia) Berhad.
“Schedule” means the information page issued by us for you in respect of this Certificate that contains, among
other things, the details of the Benefits which apply and the amount of contributions payable and the Sum
Covered.
“Wakalah” means the appointment by one party of another to act on his behalf. In the context of this Certificate,
you are deemed to have appointed us to manage the General Risk Fund.
“Warranties” means either restriction or obligation that the Certificate 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.
“You” or “Your” refers to the Participant named in the Schedule.
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2. Basis of this Certificate
2.1 You have applied to Us for the Takaful by making a written proposal and declaration, which form the basis
of this Certificate and shall be deemed as a binding agreement between You and Us.
2.2 By agreeing to pay the Contribution amount as shown in the Certificate Schedule, You are participating in
this plan and You will be covered under the General Risk Fund which is managed by Us, for losses or
damages You suffer due to or from accidents which may happen during the Period of Takaful shown in the
Certificate Schedule, including the losses or damages arising from Your legal liability due to such
accidents.
2.3 The terms and conditions contained in this Certificate will apply throughout Your Period of Takaful.
2.4 Please be informed that all endorsements, clauses or warranties stated in the Certificate Schedule shall also
be a part of this Certificate.
2.5 We accordingly have the option to void the Certificate:
(a) if any such documents, representations or information is false or untrue; or
(b) if any documents, representations or information which should have been supplied to us are not
supplied.
If we do so, any contribution paid shall be refunded.
3. No Assignment
3.1 This Certificate and the benefits hereunder cannot be assigned and notice of any purported assignment
thereof shall accordingly not have any effect.
4. Warranty
This Certificate is subject to the following Warranties:
4.1 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 Takaful.
4.2 Contribution Warranty
Contribution due to Us must be paid and received by Us within sixty (60) days from the inception date of
this Certificate/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 Contribution for the period.
Where the Contribution 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 Contribution payable was received by a person, including an Takaful agent
who was not authorised to receive such Contribution, shall lie with Us.
5. Anti-Money Laundering and Counter Financing of Terrorism
5.1 If we discover or have justified suspicion that you are or become sanctioned by any competent authorities
recognized by us or that you may be in breach of any law, or this Certificate or any Takaful coverage under
this Certificate is exploited for money laundering activities or to finance terrorism, or if any instruction /
request given may lead to a breach of any sanction / law, we reserve the right to reject any instruction /
request given or terminate this Certificate or your Takaful coverage under this Certificate immediately. We
may accordingly deal with all contributions paid and all benefits / sums payable in respect of your Takaful
coverage in any manner that we deem appropriate, including but not limited to handing it over to the
relevant authorities.
6. Consent to Disclose Personal Information
6.1 You irrevocably consent and confirm that you have obtained the consent of the Covered Person to enable
us to use, disclose, transfer or exchange all Personal Information:
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(a) to any HSBC Group company or agent or service provider;
(b) to any third party to facilitate the conduct of our business or the operation of our internal procedures;
(c) to Bank Negara Malaysia or any other relevant authority;
(d) to any third party in respect of the or Takaful industry for the maintenance of data-bases, statistical
analysis, anti-fraud, claim verification or operational matters;
(e) to prevent or facilitate the investigation of criminal activities or for fraud detection; and
(f) to comply with applicable laws or regulations.
For the purpose of this Clause:
“HSBC Group” means HSBC Holdings plc. its subsidiaries and associated companies.
6.2. You shall keep us updated of any changes to such Personal Information as soon as practicable. We shall not
be liable for any direct or indirect loss or damage due to any inaccurate or incomplete Personal Information.
7. Reinstatement of Sum Covered
7.1 After a loss, the full sum covered of this Takaful shall be maintained. You are required to pay an additional
pro rata Contribution based on the amount of loss calculated from the date of loss to the expiry date of
Takaful.
8. Interpretation
8.1 In this Certificate, unless otherwise stated:
(a) headings are inserted for convenience only and shall not affect the construction of this Certificate;
(b) references to persons shall include a body of persons, associations / societies, partnerships, as well as
bodies incorporated and unincorporated;
(c) words denoting the singular shall where appropriate include the plural and vice-versa;
(d) words denoting a gender shall include every gender; and
(e) references to any notice or request to be given to the us shall be in writing.
8.2 Each provision of this Certificate is severable and distinct from the others and if one or more of such
provisions are or becomes invalid, void or illegal; the enforceability of the remaining provisions of this
Certificate shall not in any way be affected or impaired by it.
9. Currency
9.1 Contributions and benefits payable under this Certificate shall be in Ringgit Malaysia.
10. Subject to Laws, Rules and Regulations
10.1. This Certificate is subject to and shall be performed in accordance with the laws, rules and regulations
currently in force in Malaysia and such laws, rules and regulations shall include but shall not be limited to
any circulars, directives or guidelines now or hereafter issued by Bank Negara Malaysia (including its
Shariah Advisory Council) applicable to the Takaful industry ("Rules and Regulations"). In the event of any
conflict between the provisions of this Certificate and such Rules and Regulations, the Rules and
Regulations shall prevail.
10.2. We shall have the absolute authority to make any changes that may be required to comply withthe Rules
and Regulations by written notice to you.
11. Cancellation
11.1. You may cancel this Certificate at any time by giving Us notice in writing and we will refund any Takaful
Contribution You have paid less an amount for the period You were covered as long as You have not made
a claim during that period. The amount to be refunded upon cancellation of the Certificate shall be subject
to the minimum contribution to be retained by Us.
We may also cancel this Certificate at any time by giving You seven (7) days’ notice in writing to your last
known address known to Us. If you have not made a claim during the subsisting Period of Takaful, You
will be entitled to a refund of the part of Your Contribution for the unexpired portion of the period of
Takaful.
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C. Contributions & Fees
1. Contribution
1.1 This Certificate is issued and the benefits under this Certificate are available to you in consideration of the
payment of the prescribed contributions on or before it fall due.
1.2 The contribution payable is stated in the Schedule.
1.3 We may revise the contribution at any time provided we give you at least Three (3) months’ notice in
writing.
2. Contribution Position Upon Termination
2.1 If contribution is paid for any period beyond the termination of this Certificate, the unutilized contribution
shall be refunded.
2.2 We shall have a first lien upon all sums payable under this Certificate to secure any unpaid contribution and
we may at any time apply such sums towards the settlement of unpaid contribution.
3. Wakalah Fee
3.1 Each contribution will be subject to a Wakalah fee which is payable to us.
3.2 Under this plan, the Wakalah fee is fixed at 65% of the contribution.
3.3 We may revise the Wakalah fee payable at any time provided we give you at least Three (3) months’ notice
in writing.
D. Funds
1. General Risk Fund and Surplus Distribution
1.1 The contribution paid (less Wakalah fee) for this Certificate will be deposited into General Risk Fund.
1.2 The General Risk Fund is for the collective benefit of all its participants and provides a means of financial
protection.
1.3 The General Risk Fund is used to pay the Sum Covered for the relevant coverage under this Certificate.
No amount in the General Risk Fund will be used to pay any surrender value of this Certificate.
1.4 We will manage the General Risk Fund in accordance with principles of Shariah and will avoid investing the
assets of the General Risk Fund in securities and assets prohibited by Shariah.
1.5 We are authorised to and may secure retakaful / reinsurance as we see fit in respect of the General Risk
Fund / Takaful coverage granted under this Certificate. The contribution / premium payable in respect of
such retakaful / reinsurance shall be paid out of the General Risk Fund. All proceeds (if any) from the
retakaful / reinsurance arrangements will be credited into the General Risk Fund.
1.6 All costs, expenses, charges and levies for maintaining and investing the assets of the General Risk Fund
and any other related expenses shall be borne and paid from the General Risk Fund.
1.7 At the end of each financial year, the surplus in the General Risk Fund is determined. Part of the surplus
may be retained for contingencies and subject to Clause 1.8 below, the balance will be distributed to
eligible participants.
1.8 As a reward for managing and administering the General Risk Fund, we are entitled to an incentive equal
to Fifty percent (50%) of any surplus distributable from the General Risk Fund. The balance Fifty percent
(50%) of any surplus distributable will be distributed among eligible participants. If the surplus payable to
a participant is less than or equal to RM 10.00, it will be donated to a selected charitable purposes
approved by the Takaful Operator’s Shariah Committee.
1.9 If the General Risk Fund is in deficit, we will grant Qard (interest free loan) from our Operator Fund to
rectify the deficit. Future surplus distributable in the General Risk Fund will be used to repay the Qard before
the distribution of any surplus.
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E. Benefits
Section 1 – Loss or Damage to your Building
What is Covered The Building is covered under this section.
The maximum amount payable under this section for loss
or damage to the Building is the Sum Covered shown in
the Schedule.
What is Not Covered
Household goods, personal effects or any other content
of or in the Building.
We will not provide cover for loss or damage to Your
Building as follows :
The causes Covered The causes not Covered
We will provide cover for loss or damage to Your
Building caused by any of the following :
1) Fire, Lightning, Thunderbolt, Subterranean Fire
2) Explosion
3) Aircraft and Other Aerial Devices and/or articles
dropped from them
4) Impact with any of the Building:
i) For Private Dwellings, by any road vehicle or
animals not belonging to or under the control of:
You; or
Your family member.
ii) For Block of Flats or Apartments, by any road
vehicles or animals not belonging to or under the
control of:
You; or
Your agent or servant; or
Any person resident on the Private Flats or
Apartments.
a) Vehicle or animals belong to You or Your
Family;
b) Domestic animals, birds or pets.
5) Bursting or Overflowing of Domestic Water Tanks,
Apparatus or Pipes subject to Excess of RM50 per
Incident.
a) Destruction or damage occurring while the
Private Dwelling House is left unoccupied for
more than ninety (90) days whether consecutively
or not in any one period of Takaful.
b) Damage to the water tanks, apparatus or pipes; or
by any gradual cause;
6) Theft, but only if accompanied by actual forcible and
violent breaking into or out of a building or any such
attempt
a) If the Private Dwelling House is unoccupied for
more than ninety (90) days whether consecutively
or not in any one period of Takaful, the cover
will be suspended unless agreed by Us by way of
an endorsement.
b) Loss or damage due to theft by Your domestic
servants or any member of Your family.
7) Hurricane, Cyclone, Typhoon, Windstorm subject to
Excess of 1% of the Sum Covered or RM200
whichever shall be less per Incident
a) Loss or damage to :
i) any building in the course of construction,
reconstruction or repair, unless all outside
doors, windows and other openings are
complete and protected;
ii) metal smoke stacks, awnings, blinds, signs
and other outdoor fixtures or fittings
including gates and fences.
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8) Earthquake, Volcanic Eruption subject to Excess of
1% of Sum Covered or RM200 whichever shall be
less per Incident
9) Flood subject to Excess of 1% of Sum Covered or
RM200 whichever shall be less per Incident.
We will either pay You or decide to reinstate, replace or repair the Building covered if loss or damage is caused by
the above risks.
Excess Clause
This is the portion of the claim You have to pay for loss or damage, other than by fire, to Your Building (but not the
Contents) caused by a Covered Risk. We will only pay You above the amount shown in the Schedule.
However, this Clause will separately apply to:
a) Each Building, for which purposes We will treat all covered Building at the same premises as shown in the
Certificate Schedule as the same building; and
b) Each Incident giving rise to the loss or damage will not be considered as has ended until there have been seven
(7) days in a row when the risk concerned is not present. The clause will then apply again.
Section 2 – Alternative Accommodation or Loss of Rent
What is Covered
What is Not Covered
As an owner, You are covered for loss of rent in the event
Your Private Dwelling House as stated on the Schedule is
no longer habitable, as a result of a Covered event for the
period necessary for reinstatement.
As an occupier, We will pay for reasonable additional
expenses incurred at a hotel, lodging House or boarding
House, as a result of a Covered event, for the period
necessary for reinstatement.
The total limit of liability shall not exceed ten (10)
percent of the Total Sum Covered on Building.
This benefit is in additional to the Total Sum Covered as
stated on the Schedule.
We will not pay if the loss is as a result of damage to the
Building not covered by Section 1.
Section 3 – Liability to the Public
What is Covered What is Not Covered
We will indemnify You or Spouse Your legal liability in
respect of accidents or series of accidents arising out of
one occurrence, during the period of Takaful to property
or bodily injury to another person, who is not a member
of Your family, Household or in Your service:
a) Liability as owner of the covered Building caused
by a defect in the buildings.
b) Liability as an Occupier in respect of accidents
which occur in or about the private dwelling house. Our limit of liability shall not exceed the sum of
RM 50,000 in any Period Of Takaful. We will also indemnify You or Spouse:
i) Legal costs and expenses recoverable from You
or Spouse by any claimant, provided such legal
cost and expenses were incurred before the date
a) Any claims brought against You or Spouse, in any
country in courts outside Malaysia.
b) Any claims brought against anyone who is
employed by You under a contract of service or
apprenticeship and who is injured during the
course of employment.
c) All legal costs and expenses which are not incurred
in or recoverable in Malaysia.
d) We shall not be liable for injury or damage arising
out of or incidental to:
Ownership, possession or use by or on behalf of
You or Spouse of any lift, vehicle, vessel or
craft of any kind;
The carrying out of alterations, additions,
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We shall have paid or offered to pay the full
amount of the claim or the total amount
recoverable in respect of any one occurrence.
ii) Legal costs and expenses incurred by You or
Spouse with Our consent.
If Buildings are for Blocks of Flats or Apartment,
Our indemnity to You is restricted to Your legal
liability for claims made on You as owner of the
Buildings, as specified on the Schedule, but not as a
resident occupying any part of the covered
Buildings in respect of any accident occurring
during the period of Takaful.
We will indemnify Your personal representative in
the event of Your death, in respect of the liability
incurred by You or Spouse, provided the personal
representative observes and fulfils and is subject to
the terms, conditions and limitations of the
Certificate.
repairs or decorations to Your buildings;
Damage to property by subsidence fire or
explosion (other than explosion of any
domestic boiler fitted in an individual flat or
apartment in the covered Building), for Takaful
for Private Flats or Apartments;
Any contractual agreement;
Asbestos or exposure or potential exposure to
asbestos, any actual or alleged asbestos related
injury or damage involving the use, presence,
existence, detection, removal, elimination or
avoidance of asbestos;
e) Injury or damage arising from pollution or
contamination by naturally-occurring or man-
made substances, forces (such as radiation) or
organisms or any combination of them, if the
pollution or contamination:
was the result of an intentional act;
was expected or should have been expected;
happened before the commencement of the
Period of Takaful;
is not reported within 30 days from the end of
the Period of Takaful in which it occurred; or
is the result of any criminal or deliberate act by
You or Your Family.
f) Any part of the covered Building used in
connection with Your profession or business.
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F. Risk Exclusions
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 Takaful. 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 Takaful , 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 Loss of Rent.
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G. How to make a claim?
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.
H. How We will settle Your claim?
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 Takaful to another person shall only take effect after We have endorsed the Certificate.
No Right of Claim from Any Other Person
Whilst the Certificate Covers property of Your family or domestic servant, only You can make a claim on their
behalf.
Limit to Three (3) Paying Guests only
This Certificate is valid if the number of paying guests, boarders and lodgers does not exceed three (3) persons.
For the purposes of Benefit – Liability to the Public, these persons are deemed to be members of Your Household.
Market Value
We will indemnify You the covered value or the market value of the covered property whichever is lower subject to
the deduction of any Excess.
Market value means the value of the property covered 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 distributer, or
building contractor , or
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loss adjuster licensed under the Takaful Act 1996, or
Registered Valuer under the Valuers and Appraisers 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 Takaful will not exceed the amount
stated against each item or in the aggregate, the Total Sum Covered specified on the Schedule or such other sum or
sums endorsed in this Certificate.
Average
If the market value of the property covered at the time of any loss is collectively of higher value than the sum
covered 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 covered.
Other Takaful
If there are any other policies/Certificates 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
Certificate.
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 covered property;
deal with the salvage of the damaged covered property.
However, You shall not abandon the damaged covered property to Us.
I. Clauses - Applicable only if specified in the Schedule
Asbestos Exclusion Clause
This Certificate excludes all claims and losses based upon, arising out of, directly or indirectly resulting from or in
consequence of, or any way involving:
1. asbestos or exposure or potential exposure to abestos, or
2. any actual or alleged asbestos related injury or damage involving the use, presence, existence, detection,
removal, elimination or avoidance of asbestos or exposure or potential exposure to asbestos.
Property Damage Clarification Clause
Property damage covered under this Certificate shall mean physical damage to the substance of property.
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Physical damage to the substance of property shall not include damage to data or software, in particular any
detrimental change in data, software or computer programs that is caused by deletion, a corruption or a deformation
of the original structure.
Consequently the following are excluded from this Certificate:
1. Loss of or damage to data or software, but not limited to any detrimental change in data, software or computer
programs that is caused by a deletion, a corruption or a deformation of the original structure, and any business
interruption Fosses resulting from such loss or damage. Notwithstanding this exclusion, loss or damage to data
or software, which is the direct consequence of physical damage to the substance of property, shall be covered.
2. Loss or damage resulting from impairment in the function, availability, range of use accessibility of data,
software or computer programs, and any business interruption losses resulting from such loss or damage.
Date Recognition Clause
It is noted and agreed this Certificate is hereby amended as follows:
A. We will not pay for any loss or damage including loss of use with or without physical damage, injury (including
bodily injury), expenses incurred or any consequential loss directly or indirectly caused by, consisting of, or
arising from, the failure or inability of any computer, data processing equipment, media microchip, operating
systems, microprocessors (computer chip), integrated circuit or similar device, or any computer software,
whether the property is yours or not, and whether occurring before, during or after the year 2000 that results from
the failure or inability of such device and/or software as listed above to :
1. correctly recognize any date as its true calendar date;
2. capture, save, or retain, and/or correctly manipulate, interpret or process any data or information or
command or instruction as a result of treating any date other than as its true calendar date; and/or;
3. capture, save, retain or correctly process any data as a result of the operation of any command which has
been programmed into any computer software, being a command which causes the loss of data or the
inability to capture, save, retain or correctly process such data on or after any date.
B. It is further understood that We will not pay for the repair or modification of any part of any electronic data
processing system or any part of any device and/or software as listed above in A.
C. It is further understood that We will not pay for any loss or damage including loss of use with or without physical
damage, injury (including bodily injury), expenses incurred or any consequential loss directly or indirectly
arising from any advice, consultation, design, evaluation, inspection, installation, maintenance, repair or
supervision done by You or for You or by or for others to determine, rectify or test, any potential or actual
failure, malfunction or inadequacy described in A above.
D. It is further understood that We will not pay for any consequential loss resulting from any continuing inability of
the computer and equipment described in A above to correctly recognize any date as its true calendar date after
the lost or damaged property has been replaced or repaired.
Such loss or damage, injury (including bodily injury), expenses incurred or any consequential loss referred to in A,
B, C or D above, is excluded regardless of any other cause that contributed concurrently or in any other sequence to
the same.
Saving Clause
This endorsement shall not exclude subsequent loss or damage or consequential loss which itself results from an
insured peril as defined in the Certificate.
Radioactive/Nuclear Energy Risks Exclusion Clause
This Takaful does not cover loss, damage, cost or expense of whatsoever nature directly or indirectly caused by,
resulting from or in connection with any of the following regardless of any other cause or event contributing
concurrently or in any other sequence to the loss:
1. ionising radiations from or contamination by radioactivity from any nuclear fuel or from any nuclear waste or
from the combustion of nuclear fuel;
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2. the radioactive, toxic, explosive or other hazardous or contaminating properties of any nuclear installation,
reactor or other nuclear assembly of nuclear component thereof;
3. any weapon of war employing atomic or nuclear fission and/or fussion or other like reaction or radioactive
force or matter.
Mortgagee (Chargee) Clause
Loss, if any, payable to the Mortgagee (Chargee) as interest may appear in the Schedule, as to the interest of the
Mortgagee (Chargee) only therein, shall not be invalidated by any act or neglect of the Mortgagor (Chargor) or the
Owner of the within described property nor any foreclosure or other proceedings or notice of sale relating to the
property or by the occupation of the premises for purposes more hazardous than are permitted by this Certificate, or
by the non-occupation thereof, or by any other increase of risk taking place in the property covered hereunder,
Provided that in case the Mortgagor (Chargor) or Owner shall neglect to pay any contribution due under this
Certificate the Mortgagee (Chargee) shall on demand pay the same. Provided also that the Mortgagee (Chargee)
shall notify Us any non-occupancy or any change of ownership or occupancy or increase of hazard which shall come
to the knowledge of the said Mortgagee (Chargee.) and unless permitted by this Certificate it shall be noted thereon
and the Mortgagee (Chargee) shall on demand pay the contribution for such increased hazard for the term thereof
otherwise this Certificate shall be null and void.
And it is further agreed that whenever We shall pay the said Mortgagee (Chargee) any sum in respect of loss or
damage under this Certificate and shall claim that as to the Mortgagor(Chargor) or Owner no liability therefor
existed, We shall become legally subrogated to all the rights of the Mortgagee (Chargee) to the extent of such
payment but not so as to impair the right of the said Mortgagee (Chargee) to recover the full amount of any claim it
may have on such Mortgagor (Chargor) or Owner or on any other party or parties covered hereunder of from any
securities or funds available
Non-Cancellation Clause
And it is further agreed that cancellation of this Certificate shall not be effected by the Participant except upon prior
notification to the Mortgagee (Chargee) in writing giving fourteen (14) days notice to the last known address of the
Mortgagee (Chargee).
Removal of Debris Clause (Without Separate Sum Covered)
The Takaful on Item(s) No(s) as specified in the Schedule hereby covered includes costs and expenses necessarily
incurred by You with Our consent in the:
a) removal of debris
b) dismantling and/or demolishing
c) shoring up or propping
of the portion or portions of the property covered by this Certificate destroyed or damaged by fire or by any other
peril hereby covered against. (Items (b) and (c) above are deemed to be deleted when neither Building nor machinery
are covered)
The amount payable for such costs and expenses shall not exceeded 10% of the Sum Covered of each Item or
Ringgit Malaysia Two Million (RM2,000,000) in aggregate of any one loss, whichever is lower.
We will not pay any costs or expenses:
i) incurred in removing debris except from the site of such property destroyed or damaged and the area
immediately adjacent to such site;
ii) arising from pollution or contamination of property not covered by this Certificate.
Provided always that Our maximum liability shall not exceed the sum stated in the Schedule for which the
Item(s) is/are covered.
Architect's, Surveyor's and Consulting Engineer's Fees (Without Separate Sum Covered)
The Takaful on Building, plant and machinery hereby covered includes Item(s) No(s)s specified in the Schedule
hereby covered includes costs and expenses on Architects, Surveyors and Consulting Engineer's fees for estimates,
Page 18 of 20
plans, specifications, quantities, tenders and supervision necessarily incurred in the reinstatement of the property
covered consequent upon its destruction or damage by fire or any other peril hereby covered against, but not such
fees for preparing any claim hereunder. The amount payable for such fees shall not exceed those authorised under
the scales of the Associations of the respective professions prevailing at the time of destruction or damage, subject to
the limit of the sum covered on this item(s).
Reinstatement of Value Clause
In the event of the property covered under the Certificate being destroyed or damaged, the basis upon which the
amount payable under the Certificate is to be calculated shall be the cost of replacing or reinstating on the same site
property of the same kind or type but not superior to or more extensive than the property covered when new, subject
to the following Special Provisions and subject also to the terms and conditions of the Certificate except insofar as
the same may be varied hereby.
Special Provisions
1. The work of replacement or reinstatement (which may be carried out upon another site and in any manner
suitable to Your requirements subject to Our liability not being thereby increased) must be commenced and
carried out with reasonable despatch and in any case must be completed within 12 months after the destruction or
damage, or within such further time as We may (during the said 12 months) in writing allow otherwise no
payment beyond the amount which would have been payable under the Certificate if this memorandum has not
been incorporated therein shall be made.
2. Until expenditure has been incurred by You in replacing or reinstating the property destroyed or damaged, We
shall not be liable for any payment in excess of the amount which would have been payable under the Certificate
if this memorandum had not been incorporated therein.
3. If at the time of replacement or reinstatement the sum representing the cost which would have been incurred in
replacement or reinstatement if the whole of the property covered has been destroyed exceeds the sum covered
thereon at the breaking out of any fire or at the commencement of any destruction of or damage to such property
by any peril covered against by this Certificate, then You shall bear on Your own for the excess and shall bear a
rateable proportion of the loss accordingly. Each item of the Certificate (if more than one) to which the
Memorandum applies shall be separately subject to the foregoing provision.
4. This Certificate shall be without force or effect if:-
a) You fail to notify to Us within six (6) months from the date of destruction or damage, or such further time
as We may in writing allow, Your intention to replace or reinstate the property destroyed or damaged; and
b) You are unable or unwilling to replace or reinstate the property destroyed or damaged on the same or
another site
5. No payment beyond the amount which would have been payable under the Certificate if this memorandum had
not been incorporated therein shall be made if at the time of any destruction or damage to any property covered
hereunder such property shall be covered by any other insurance or Takaful effected by or on behalf of You
which is not upon the identical basis of reinstatement set forth therein.
J. Optional Benefits - Applicable only if specified in the Schedule
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For an additional Contribution, Your Certificate may be extended to cover the following benefits to the covered
Building. These optional benefits will be stated on the Schedule if You choose to take these extension.
Optional Benefit No. 1 – Extension to cover Riot, Strike and Malicious Damage
What is Covered
This Takaful is extended to cover Riot, Strike, and
Malicious Damage.
Loss or damage to property covered directly caused by :
What is Not Covered
Loss or damage occasioned by or through or in
consequence, directly or indirectly, of any of the
following occurrences, namely:
a) War, invasion, act of foreign enemy, hostilities,
or warlike operations (whether war be declared
or not), civil war;
b) Mutiny, civil commotion assuming the
proportions of or amounting to a popular
uprising, military uprising, insurrection,
rebellion, revolution, military or usurped power;
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 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.
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 Takaful, the burden of proving that such
loss or damage is covered shall be upon You.
d) In respect of malicious acts, we shall not be
liable for any loss or damage by fire or explosion
nor for any loss or damage arising out of or in the
course of burglary, housebreaking, theft or
larceny or any attempt of such acts or caused by
any person taking part.
e) Loss of earnings, loss by delay, loss of market or
other consequential or indirect loss or damage of
any kind or description whatsoever.
f) Loss or damage due to total or partial cessation
of work or the retarding or interruption or
cessation of any process or operation.
g) Loss or damage caused by permanent or
temporary dispossession resulting from
confiscation, commandeering or requisition by
any lawfully constituted authority.
h) Loss or damage caused by permanent or
temporary dispossession of any building
resulting from the unlawful occupation by any
person of such building.
1) The act of any person taking part together with
others in any disturbance of the public peace
(whether in connection with a strike or lock-out or
not) not an occurrence mentioned in items (a), (b)
and (c) under the section “What is Not Covered” of
this extension.
2) The action of any lawfully constituted authority in
suppressing or attempting to suppress any such
disturbance or in minimising the consequences of
any such disturbance.
3) The wilful act of any striker or lock-out worker done
in furtherance of a strike or in resistance to a lock-
out.
4) The action of any lawfully constituted authority in
preventing or attempting to prevent any such act or
in minimising the consequences of any such act.
5) The malicious act of any person (whether or not such
act is committed in the course of a disturbance of the
public peace) not being an act amounting to or
committed in connection with an occurrence
mentioned in items (a), (b) and (c) under the section
“What is Not Covered” of this extension.
Average:
If the property covered shall at the breaking out of any fire
or at the commencement of any destruction of or damage
to such property by any other peril covered against by this
extension is collectively of greater value than the sum
covered, then You will be responsible for the difference
and will bear a pro-rated share of the amount of loss. This
average condition will apply separately for each item
covered. Subject otherwise to the terms and conditions of
the Certificate.
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For g) or h) above, we are not relieved of any liability
to You in respect of physical damage to the property
covered occurring before dispossession or during
temporary dispossession.
Optional Benefit No.2 - Extension to cover Subsidence and Landslip
What is Covered
This Takaful is extended to cover loss or damage to the
property covered caused by:
1) subsidence and/or heave of the site on which the
buildings stand or land belonging to; or
2) landslip
This Optional Benefit is subject to the following excess,
and is applicable for each and every loss:
5% of the total sum covered or RM25,000.00 whichever is
the lower, ascertained after the application of any
condition of average.
What is Not Covered
We will not pay for loss or damage :
a) to swimming pools, terraces, patios, drives,
footpath, walls, gates or fences unless the
building, its outbuilding or garages are damaged
by the same cause and at same time;
b) to or resulting from movement of solid floor
slabs, unless the foundation beneath the external
walls of the buildings are damaged by the same
cause and at the same time;
c) Directly or indirectly caused by:
Coastal or river erosion;
Demolition, structural alteration or structural
repair;
Defective design or inadequate construction
of foundations.
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