Don't quite understand your question especially the buying separate fire insurance and changing the master policy owner name. I will have a swing at it anyway.

From what I understand, the master insurance is under the name of the jmb for and on behalf of all parcel units.

The premium is based on ur unit size and shared across the board.

So in the event a fire destroys the entire condo or a particular unit, an owner or jmb can make a claim under the policy.

Etiqa use to charge me flat fee of RM 500 for fire insurance only, whereas the Condo master insurance cover building and unit for RM 300. (They need fire insurance to secure my loan)

Doesn't quite make any sense to take a separate insurance. Assuming Condo collapse and they have to rebuild, becoz u bought a separately policy, ur unit doesn't get rebuilt and there's a hole in the middle of the building lol...

Interesting, no one ever asked this questions before. I just blindly pay my insurance premium every year!


Yea the purpose is to submit to bank for the loan, and has to submit every year.
lol… typical banks being kiasi.


The master policy only covers exterior/common areas only is it? Or it includes the owner' property as well?
Covers exterior, interior, common area and even property of the building, say for example your barrier gate not functioning and requires repair due to lighting strike. Yes, it also includes your parcel and property. However you should always check your policy to better what they actually cover. It may sound good on paper as to what they may cover, insurers however won’t make your life easy in filing a claim for lost.

If it includes common area as well as private area, wouldnt be the insured amount be higher if compared to buying own fire insurance?

chicken and egg story. Would you get more discounts if you negotiate in bulk or as an individual? Insurers also want business also  and JMB is like a big fat cow.


Lastly, assuming those who only needs this because still tied to loan has to pay for it, what about those who already finished paying loan so they do not required the policy (so they do not need to pay) is that right? So who would bear those amount? Absorbed by JMB themself?

fortunately, I don’t have to answer this question cause stones will be thrown at me. The burden is imposed on the JMB to purchase some form of insurance (section 93 SMA). Any additional insurance (not mentioned in section 93 SMA) will require a special resolution. The insurance premium is a recognized expenditure that is charged to the maintenance account (section 23(3)©. If you default on your payment, JMB may pursue an action against the parcel owner in the form of a debt.


Also is this fire insurance fee are part of maintenance fees? If yes, why JMB said i need to pay for the name change on the policy?

yes, see above explanation. (a bit of tikam here) If I am not mistaken, the master policy is under the name of the JMB (principal/trustee), whereas the owners are reflected in a schedule (as beneficiaries other the policy as well), so when your parcel is sold, you may require a change of name. As to why your JMB is requiring you to pay for a change of name, you might want to ask them as to the reason and the quantum you are required to pay.

Sorry abit confusing coz dont know how to explain lol
your question very unique, not something I would as either but good question nevertheless.

Slight correction to your question…

It’s charged as an expenditure under the JMB’s maintenance account. The premium has to be paid first, can’t wait for all the parcel owners to pay up. Otherwise, the insurance will never get paid!

You will be invoiced for the amount paid (based on your unit share) as advanced by the JMB for the amount charged to the maintenance account. Normally, once you paid, you get a copy of the policy (with owners name) without charge or any other fees.

*sorry I don’t know why I keep missing out words*


This post has been edited by aurora97: Sep 7 2015, 03:29 PM

Ask and you shall receive.


94. Amount to be insured
(1) Any building shall be insured for at least the reinstatement value of the building indicated by the last valuation obtained for the building.
(2) For the purpose of determining the reinstatement value of the building that is required to be insured under this Part, a reinstatement valuation of the building shall be obtained from a registered valuer at least once every five years.
(3) The cost of such valuation shall be paid out from the maintenance account.

*resistance is futile, now pay your maintenance and submit to the JMB/Mc*

This post has been edited by aurora97: Sep 7 2015, 03:58 PM

auditor job is just to make sure the figures are supported by documents, they don't look into commercial aspects of the transaction i.e. whether reasonable or not.

normally how JMB/MC committee members "scheme money" is via the Premium. In your policy statement, the following will be reflected:-

Master Policy A
Premium payable: RM X
GST: RM Y
Stamp Duty: RM Z
Total Payable: RM XYZ

what you don't see is the brokerage/commission earned by the Broker, this is factored into the premium and paid by the insurer/underwriter.

the person concerned may be paying the committee member a portion of his commission as "introducer fee".

the only way to mitigate such practices are through "open tendering" of insurance policy.