Under The Building and Common Property (Maintenance and Management) Act 2007 (“The Act”), it stipulates that the Joint Management Body has a responsible for the insurance of the properties. Under Section 8 of the Act, it is the duties and powers of Joint Management Body to:
– to insure and keep insured the building to the replacement value of the building against fire and such other risks as may be determined by the Body; (section 8, 1c)
– to apply insurance moneys received by the Body in respect of damage to the building for the rebuilding and reinstatement of that building; (section 8, 1d)
Also mentioned in Section 8, clause 3; The Body shall be deemed—
(a) for the purposes of effecting any insurance under paragraph (1)(c), to have an insurable interest in the building equal to its replacement value or any value as determined by the Body; and
(b) for the purposes of effecting any insurance under paragraph (1)(d), to have an insurable interest in the subject matter of the insurance.
Thus, the Joint Management Body must insured the property under a Master Fire Policy, that covers all individually owned units as well as the common property.
Drop us a email (info[@]fireinsurance.com.my) or call Edmund at 013 3521318 to schedule for a discussion.
