How to avoid double fire insurance charge, particularly for Maybank? Anyone with any experience?

The situation is such. Maybank claim they will automatically take up fire insurance for all customers. For those who want to buy their own insurance or covered by JMB / MO, they ask to provide proof then will give refund. This also applies for under construction property.

However, my experience with RHB is, as long as I submit my annual fire insurance, they will not charge me.

So why is Maybank saying they will charge upfront every year and then we claim a refund later? Seems unnecessarily extra work.

Can anyone share any tips how to get around this?

Mine was under MBB as well, so far no upfront debit of fire insurance and they will give advance notice to furnish the renewed fire insurance policy if not then only they will debit the premium. So happened mine was under Etiqa therefore since it’s related co it’s easier to manage.

The tricky part is the renewed fire insurance policy will only available from MO once the current term expired.

This is usually to protect bank's interest in the property while that property is under loan, so that the banks' asset (the property) is protected by master fire insurance.

Sometimes MO/JMB choose to buy a fire policy that does not meet bank's minimum coverage requirements, Maybank's method is the more conservative "pro-active" way to ensure the minimum insurance required is covered at all times.

Buying directly fire insurance online from etiqa as it saves the 15% in commission fee. Too bad, MBB don't allow us to buy and present the insurance for landed property.

Why not?

Bank gives borrower lower interest rate but it make up from other sources.

Just like chap fan with free tea or water. They need to boil the water and wash the cups and someone has to do the job with a salary.

So, charging 30 - 50 sen extra per head is good enough to cover cost plus profit, if turnover is high.

This post has been edited by mini orchard: Oct 7 2023, 03:01 AM

Did you get back your money? How to claim back the fire insurance?
My apartment is under construction. Maybank just purchased the Etiqa fire insurance for me.....

Donut, go to your home loan branch and submit your developer fire insurance.

Or alternatively can call your home loan MBB branch see can furnish online or not so you no need go there in person.

IF ur developer/JMB/MC able to furnish u the policy before the expiring date and u hardworking to submit it to ur bank before the expiring date, bank probably wont charge u upfront.
Banks sure state such way to protect thier interest in general.

my RHB no submit also no kena charge. not sure why. i called them up they say if transaction history of the loan account if no kena deduct for fire insurance then no need submit.
Perhaps i should wait current year statement (which will be generated on December i guess)

For MBB, email CAC_fireinsurance@maybank.com with your loan account number and refund bank account details, attached with the Fire Insurance Certificate from management office.

Funny, etiqa underwrites mortgage unit under construction by a developer/ MC to you?