can the bank actually 'force' you to buy the fire insurance, like legally?

anyone know the related regulations in favor or against that?

thx

Yes they can. Since you took the loan from them. They have a right to protect their investments.
For house, the bank will take the fire insurance and charge the premium to you through your loan every year.
If apartment or condo, the JMB will purchase and charge you. You have to show proof to the bank.

This post has been edited by wigneswr: Jun 3 2019, 01:23 PM

The bank is protecting "their" property, until you've settled your loan, the property is not legally yours.

However, most condo already purchased it, just get it from your JMB / MO, forward it over to your bank and ask them to cancel and refund your premium. If your prop is landed, then different story la, you gotta take it I presume.

Either u follow what they want.. or u get loan from other bank.
They force me for the MLTA 5 years.... If not they will not approve the loan.

MLTA => Fixed Period
Fire Insurance => Loan Tenure => Indefinite !

Yes, you are correct.....
What I am saying is follow bank what they want, then only u get the loan.

True True to some certain extent ... but luckily for Fire Insurance, you have option not to take from the bank

yea i got cover from JMB, but

the insurance provider and the bank are partner, if i dont opt out from the bank auto charge, it will actually double insured themselves.

it look quite stupid to me.

This post has been edited by ilovemorgiana: Jun 3 2019, 01:45 PM

Wait this is new or existing loan?

Answer a bit differentleh...

the JMB/MC has the legal duty to insure a strata building from fire damage (thus each year you need to pay fire insurance to the management).

Upon payment, you have to obtain a copy of the fire insurance certificate (for your unit) and forward it to the bank, failing which, the bank will deem that you did not purchase one and will proceed to do so with their own panel insurers (thus there'll be double coverage for your unit).

The bank is not obliged to obtain the fire insurance cert from the management themselves as it is your obligation to do so (can refer in the bank's Deed of Assignment).

existing

thanks for the info. i just being lazy

Existing loan somemore. Haha...

Your building fire insurance premium purchased by JMB probably cost half of that if the bank pirchase on your behalf, just becoz you didnt furnish them a piece of paper.

On average and depending on sq feet, building, bank and insurer, the premium for fire insurance can cost between rm 50p to 1k.

On top of that, you still have to pay ur JMB for the fire insurance they purchased becoz its mandatory under SMA. It will be charged to your maintenance account.

Laziness it gonna cost u shit loads.