Enhanced Fire Insurance Policy

Enhanced Fire

Insurance Policy

FFFEFI001-Q-0518

QBE INSURANCE (MALAYSIA) BERHAD welcomes you as a Policyholder and we take this

opportunity to recommend that you thoroughly examine this Document which sets out the limitations and

benefits of the insurance. Please store it in a safe place.

Should you have any query, please contact your Registered Agent/Broker or our QBE office, especially if the

insurance is not completely in accordance with your intentions.

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Enhanced Fire Insurance Policy

CONTENTS

ENHANCED FIRE INSURANCE

DEFINITIONS

CONDITIONS

1. Receipts

2. Other Insurance

3. Displacement

4. Excluded Causes

5. Excluded Perils

6. Excluded Liability

7. Excluded Property

8. Termination

9. Marine Policy

10. Cancellation

11. Notification of Loss

12. Rights of Company

13. Fraudulent Claims

14. Reinstatement

15. Market Value

16. Subrogation

17. Contribution

18. Average

19. Reinstatement of Sum Insured

20. Arbitration

21. Time Limit

22. Notice

23. Meaning

MEMORANDA 1

1. Premium Warranty

2. Foundation Exclusion

3. Date Recognition

4. Property Damage Clarification Clause

5. Radioactive / Nuclear Energy Risks Exclusion Clause

6. Unvalued Policy Clause

7. Restriction Of Spray Painting/Powder Spraying Warranty

8. Electrical Installations Clause (A)

9. Sanction Exclusion Clause

10. Clean Up Cost (Non Tariff)

11. Cost Of Temporary Protection (Non Tariff)

12. Expediting Expenses (Non Tariff)

13. Goods And Or Property Kept In The Open (Non Tariff)

14. Non-Invalidation (Non Tariff)

15. Plan And Specification Clause (Non Tariff)

16. Property Or Welfare, Sports and Social Club (Non Tariff)

17. Transmission and Distribution Lines Exclusions Clause (Non Tariff)

18. Waiver of Subrogation (Non Tariff)

19. Fire Extinguishing Expenses (Non Tariff)

20. Undamaged Property (Non Tariff)

21. Trace & Access Clause (Non Tariff)

22. Claims Preparation Clause (Non Tariff)

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Enhanced Fire Insurance Policy

CONTENTS

MEMORANDA 2

(i) Warranty

(ii) Clause

MEMORANDA 3

Special / Extraneous Perils Clauses And Endorsements

Aircraft Damage

Bush / Lalang Fire

Bursting Or Overflowing Of Water Tanks Apparatus Or Pipes

Earthquake And Volcanic Eruption

Electrical Installations Clause (B)

Explosion

Flood

Impact Damage Excluding Insured’s Own Vehicles

Impact Damage Including Insured’s Own Vehicles

Riot Strike And Malicious Damage

Spontaneous Combustion (By Fire Only)

Spontaneous Combustion (Full Cover)

Storm, Tempest

Subsidence And Landslip

(I) Standard Cover

(II) Deletion of Exclusion (a) under Standard Cover

Damage By Falling Trees Or Branches And Objects Therefrom

Cold Storage / Incubator Clause (A)

Cold Storage / Incubator Clause (B)

MEMORANDA 4

Fire Extinguishing Appliances (FEA)

FEA I General requirement I

FEA II General requirements II

FEA III General requirements III

FEA IV General requirements IV

FEA V General requirements V

FEA VI General requirements VI

FEA VII General requirements VII

FEA VIII General requirements VIII

FEA IX General requirements IX

FEA Warranty IX

FEA X FEA Warranty X

FEA XI FEA Warranty XI

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Enhanced Fire Insurance Policy

CONSUMER CONTRACT

(Where the Insurance is wholly for purposes unrelated to Your trade, business or profession)

Pursuant to Schedule 9 of the Financial Services Act 2013, the Insured has a duty to take reasonable care not to

make a misrepresentation in answering the questions in the Proposal Form and all the questions required by the

Company fully and accurately and also disclose any other matter that the Insured knows to be relevant to the

Company’s decision in accepting the risks and determining the rates and terms to be applied, otherwise it may

result in avoidance of contract, claim denied or reduced, terms changed or varied, or contract terminated. This duty

of disclosure continued until the time the contract was entered into, varied or renewed.

NON-CONSUMER INSURANCE CONTRACTS

(Where the Insurance is for purposes related to Your trade, business or profession)

Pursuant to Schedule 9 of the Financial Services Act 2013, the Insured has a duty to disclose any matter that the

Insured knows to be relevant to the Company’s decision in accepting the risks and determining the rates and terms

to be applied and any matter a reasonable person in the circumstances could be expected to know to be relevant,

otherwise it may result in avoidance of contract, claim denied or reduced, terms changed or varied, or contract

terminated. This duty of disclosure continued until the time the contract was entered into, varied or renewed.

The Insured also has a duty to tell the Company immediately if at any time, after this Policy contract has been

entered into, varied or renewed with the Company, any of the information given for this Policy contract is inaccurate

or has changed.

THE COMPANY AGREES subject to the Terms and Conditions contained herein or endorsed or otherwise

expressed hereon that if the Property Insured described in the said Schedule or any part of such property be

destroyed or damaged by FIRE or LIGHTNING during the Period of Insurance stated in the Schedule or of any

subsequent period in respect of which the Insured shall have paid and the Company shall have accepted the

premium required for the renewal of this Policy, the Company will pay or make good to the Insured the actual value

of the Property Insured at the time of the happening of its destruction or the actual amount of such damage.

PROVIDED THAT the liability of the Company shall in no case exceed in respect of each item the sum expressed

in the Schedule to be insured thereon or in the whole the Total Sum Insured hereby or such other sum or sums as

may be substituted therefor by endorsement hereon or attached hereto signed by or on behalf of the Company.

PROVIDED ALWAYS that the due observance and fulfilment of the terms conditions and endorsements of this

Policy in so far as they relate to anything to be done or complied with by the Insured shall be conditions precedent

to any liability of the Company to make any payment under this Policy.

DEFINITIONS

Throughout this Policy (unless more specifically described):-

BUILDING means buildings, including landlord’s fixtures and fittings and the walls, retaining walls, gates, fences,

free-standing signs and lights, underground and above ground services, site improvements within the premises.

CONTENTS means business fixtures and fittings and furnishings, tenants improvements of every description and

all other property not otherwise defined except building(s), stock and property defined in Condition 8.

MACHINERY & PLANT means all machine equipment and plant, whether mechanical, electrical or electronic, for

the purpose of the insured’s business or trade, located within the insured premises.

STOCK means stocks and materials in trade.

All being the property of the insured is legally responsible.

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CONDITIONS

1. Receipts

No payment in respect of any premium shall be deemed to be payment to the Company unless a printed form

of receipt for the same signed by an Official or duly appointed Agent of the Company shall have been given

to the Insured.

2. Other Insurance

The Insured shall give notice to the Company of any Insurance or Insurances already effected, or which may

subsequently be effected, covering any of the property hereby insured. Such notice should be given and

endorsed by the Company in this Policy before the occurrence of any loss or damage.

3. Displacement

All Insurance under this Policy

(a) on any building or part of any building,

(b) on any property contained in any building,

contained in any building,

shall cease immediately upon any fall or displacement

(i) of such building or of any part thereof,

(ii) of the whole or any part of any range of buildings or of any structure of which such building forms part,

PROVIDED that such fall or displacement is of the whole or a substantial or important part of such building or

impairs the usefulness of such building or any part thereof or leave such building or any part thereof or any

property contained therein subject to increased risk of fire or is otherwise material.

AND PROVIDED that such fall or displacement is not caused by fire, loss or damage by which is covered by

this Policy or would be covered if such building, range of buildings or structure were insured under this Policy.

In any action, suit or other proceeding, the burden of proving that any fall or displacement is caused by fire as

aforesaid shall be upon the Insured.

4. Excluded Causes

(1) This Insurance does not cover:

(a) Loss by theft during or after the occurrence of a fire.

(b) Loss or damage to property occasioned by its own fermentation, natural heating or spontaneous

combustion [except as may be provided in accordance with Condition 8(f)] or by its undergoing any

heating or drying process.

(i) The burning of property by order of any public authority

(ii) Subterranean Fire

(d) Loss or damage directly or indirectly caused by or arising from or in consequence of or contributed to

by nuclear weapons material.

(2) This insurance does not cover loss or damage directly or indirectly caused by or 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. For the purposes of this Condition 5(2)

only combustion shall include any self-sustaining process of nuclear fission.

5. Excluded Perils

This insurance does not cover any loss or damage occasioned by or through or in consequence, directly or

indirectly, of any of the following occurrences, namely:-

(a) Earthquake, volcanic eruption or other convulsion of nature.

(b) Typhoon, hurricane, tornado, cyclone or other atmospheric disturbance.

civil war.

(d) Mutiny, riot, military or popular rising, 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.

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(e) 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 of group(s) of person, whether acting alone or on behalf of in

connection with any organisation(s) or government(s), 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 happening during the existence of abnormal conditions (whether physical or otherwise)

which are occasioned by or through or in consequence, directly or indirectly, of any of the said occurrences

shall be deemed to be loss or damage which is not covered by this insurance, except to the extent that the

Insured shall prove that such loss or damage happened independently of the existence of such abnormal

conditions.

In any action, suit or other proceeding where the Company alleges that by reason of the provisions of this

condition any loss or damage is not covered by this insurance, the burden of proving that such loss or damage

is covered shall be upon the Insured.

6. Excluded Liability

This insurance does not cover any liability for:

Loss or destruction or damage caused by pollution or contamination except (unless otherwise excluded)

destruction of or damage to the property insured caused by

(i) pollution or contamination which itself results from a contingency hereby Insured against.

(ii) any contingency hereby insured against which itself results from pollution or contamination.

7. Excluded Property

Unless otherwise expressly stated in the Policy this Insurance does not cover:

(a) Goods held in trust or on commission.

(b) Bullion or unset precious stones.

(d) Manuscripts, plans, drawings, or designs, patterns, models or moulds.

(e) Securities, obligations, or documents of any kind, stamps, coins or paper money, cheques, books of

account or other business books, or computer systems records.

(f) Coal, against loss or damage occasioned by its own spontaneous combustion.

(g) Explosives.

(h) Any loss or damage occasioned by or through or in consequence of explosion; but loss or damage by

explosion of domestic boilers and gas used for illuminating or domestic purposes in a building in which

gas is not generated and which does not form part of any gas works, will be deemed to be loss by fire

within the meaning of this Policy.

(i) Any loss or damage occasioned by or through or in consequence of the burning, whether accidental or

otherwise, of forests, bush, lalang, prairie, pampas or jungle, and the clearing of lands by fire.

8. Termination

Under any of the following circumstances the insurance ceases to attach as regards the property affected

unless the Insured, before the occurrence of any loss or damage, obtains the sanction of the Company signified

by endorsement upon the Policy, by or on behalf of the Company

(a) If the trade or manufacture carried on be altered, or if the nature of the occupation of or other circumstances

affecting the building insured or containing the insured property be changed in such a way as to increase

the risk of loss or damage by fire.

(b) If the building insured or containing the insured property becomes unoccupied and so remains for a

period of more than thirty (30) days.

insured.

(d) If the interest in the property insured pass from the Insured otherwise than by will or operation of law.

(e) If a notice to quit by any order by the local Authorities for the requisition or acquisition of the land on

which the Insured's property is situated has been issued.

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9. Marine Policy

This insurance does not cover any loss or damage to property which, at the time of the happening of such loss

or damage, is insured by or would, but for the existence of this Policy, be insured by any Marine Policy or

Policies except in respect of any excess beyond the amount which would have been payable under the Marine

Policy or Policies had this Insurance not been effected.

10. Cancellation

This insurance may be terminated at any time at the request of the Insured, in which case the Company will

retain the customary short period rate for the time the policy has been in force. This insurance may also be

terminated at the option of the Company by sending fourteen (14) days' notice by registered letter to the

Insured at his last known address, in which case the Company shall be liable to repay on demand a rateable

proportion of the premium for the unexpired term from the date of cancelment. The amount to be refunded

upon termination of the policy shall be subject to the minimum premium to be retained by the Company.

11. Notification of Loss

On the happening of any loss or damage the Insured shall forthwith give notice thereof to the Company and

shall within fifteen (15) days after the loss or damage, or such further time as the Company may in writing

allow in that behalf, deliver to the Company:

(a) A claim in writing for the loss and damage containing as particular an account as may be reasonably

practicable of all the several articles or items of property damaged or destroyed, and of the amount of the

loss or damage thereto respectively, having regard to their value at the time of the loss or damage, not

including profit of any kind.

(b) Particulars of all other Insurances, if any.

The Insured shall also at all times at his own expense produce, procure and give to the Company all such

further particulars, plans, specifitions, books, vouchers, invoices, duplicates or copies thereof, documents,

proofs and information with respect to the claim and the origin and cause of the fire and the circumstances

under which the loss or damage occurred, and any matter touching the liability or the amount of the liability of

the Company as may be reasonably required by or on behalf of the Company together with a declaration on

oath or in other legal form of the truth of the claim and of any matters connected therewith.

No claim under this Policy shall be payable unless the terms of this Condition have been complied with.

12. Rights of Company

On the happening of any loss or damage to any of the property insured by this Policy, the Company may:-

(a) Enter and take and keep possession of the building or premises where the loss or damage has happened.

(b) Take possession of or require to be delivered to it any property of the Insured in the building or on the

premises at the time of the loss or damage.

same.

(d) Sell any such property or dispose of the same for account of whom it may concern.

The powers conferred by this Condition shall be exercisable by the Company at any time until notice in writing

is given by the Insured that he makes no claim under the Policy or, if any claim is made, until such claim is

finally determined or withdrawn, and the Company shall not by any act done in the exercise or purported

exercise of its powers hereunder, incur any liability to the Insured or diminish its right to rely upon any of the

conditions of this Policy in answer to any claim.

If the Insured or any person on his behalf shall not comply with the requirements of the Company or shall

hinder or obstruct the Company in the exercise of its powers hereunder, all benefits under this Policy shall be

forfeited.

The Insured shall not in any case be entitled to abandon any property to the Company whether taken

possession of by the Company or not.

13. Fraudulent Claims

If the claim be in any respect fraudulent, or if any false declaration be made or used in support thereof, or if

any fraudulent means or devices are used by the Insured or any one acting on his behalf to obtain any benefit

under this Policy; or, if the loss or damage be occasioned by the wilful act, or with the connivance of the

Insured; or, if the claim be made and rejected and an action or suit be not commenced within three (3) months

after such rejection, or (in the case of an Arbitration taking place in pursuance of Condition 22 of this Policy)

within three (3) months after the Arbitrator or Arbitrators or Umpire shall have made their award, all benefit

under this Policy shall be forfeited.

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14. Reinstatement

The Company may at its option reinstate or replace the property damaged or destroyed, or any part thereof,

instead of paying the amount of the loss or damage, or may join with any other Company or Insurers’ in so

doing; but the Company shall not be bound to reinstate exactly or completely, but only as circumstances

permit and in reasonably sufficient manner, and in no case shall the Company be bound to expend more in

reinstatement than it would have cost to reinstate such property as it was at the time of the occurrence of

such loss or damage, nor more than the sum insured by the Company thereon.

If the Company so elect to reinstate or replace any property the Insured shall, at his own expense, furnish the

Company with such plans, specifications, measurements, quantities, and such other particulars as the Company

may require, and no acts done, or caused to be done by the Company with a view to reinstatement or

replacement shall be deemed an election by the Company to reinstate or replace.

If in any case the Company shall be unable to reinstate or repair the property hereby insured, because of any

municipal or other regulations in force affecting the alignment of streets, or the construction of buildings, or

otherwise, the Company shall, in every such case, only be liable to pay such sum as would be requisite to

reinstate or repair such property if the same could lawfully be reinstated to its former condition.

15. Market Value

In the event of a loss to the property insured (other than stock and building item) herein, the Company shall

pay the insured value or the market value of the insured property, whichever is the lower, subject to the deduction

of any excess and amounts which the insured is required to bear under the policy. For the purpose of this

condition, the term market value shall mean the value of the property insured herein at the time of damage or

loss less due allowance for wear and tear and/or depreciation.

The Market Value of the insured property shall for the purpose of this condition be determined by a valuation

obtained by the Company from the manufacturer, authorised sole agent or agent authorised broker, authorised

distributor or building contractor of the cost of replacement or reinstatement, subject to the application of

appropriate depreciation, of the insured property damaged or lost as it was at the time of the occurrence of

such damage or loss.

In the event that there is, at the time of damage or loss no manufacturer, authorised sole agent or agent,

authorised broker, authorised distributor or building contractor for the insured property, the valuation shall be

obtained from a Loss Adjuster registered under the Financial Services Act 2013 or Registered Valuer under

the Valuers, Appraisers and Estate Agents Act 1981 and to be mutually appointed by both parties. The valuation

of the insured property by the manufacturer authorised sole agent or agent, authorised broker, authorised

distributor, building contractor, Loss Adjuster registered under the Financial Services Act 2013 or Registered

Valuer under the Valuers and Appraisers Act 1981 shall be conclusive evidence in respect of the market value

of the insured property in any legal proceedings against the Company.

16. Subrogation

The Insured shall, at the expense of the Company, do, and concur in doing, and permit to be done, all such

acts and things as may be necessary or reasonably required by the Company for the purpose of enforcing

any rights and remedies, or of obtaining relief or indemnity from other parties to which the Company shall be

or would become entitled or subrogated, upon its paying for or making good any loss or damage under this

Policy, whether such acts and things shall be or become necessary or required before or after his indemnification

by the Company.

17. Contribution

If at the time of any loss or damage happening to any property hereby insured, there be any other subsisting

Insurance or Insurances, whether effected by the Insured or by any other person or persons, covering the

same property, this Company shall not be liable to pay or contribute more than its rateable proportion of such

loss or damage.

18. Average

If the property hereby insured shall, at the breaking out of any fire, be collectively of greater value than the

sum insured thereon, then the Insured shall be considered as being his own Insurer for the difference, and

shall bear a rateable proportion of the loss accordingly. Every item, if more than one, of the Policy shall be

separately subject to this Condition.

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19. Reinstatement of Sum Insured

In the event of a loss, the insurance hereunder shall be maintained in force for the full sum insured and the

insured shall be liable to pay an additional premium at the rate stated on the policy calculated on the amount

of loss on a pro rata basis from the date of such loss to the expiry of the current period of insurance.

20. Arbitration

If any difference arises as to the amount of any loss or damage such difference shall independently of all other

questions be referred to the decision of an Arbitrator, to be appointed in writing by the parties in difference, or,

if they cannot agree upon a single Arbitrator, to the decision of two disinterested persons as Arbitrators, of

whom one shall be appointed in writing by each of the parties within two (2) calendar months after having

been required so to do in writing by the other party.

In case either party shall refuse or fail to appoint an Arbitrator within two (2) calendar months after receipt of

notice in writing requiring an appointment, the other party shall be at liberty to appoint a sole Arbitrator; and in

case of disagreement between the Arbitrators, the difference shall be referred to the decision of an Umpire

who shall have been appointed by them in writing before entering on the reference, and who shall sit with the

Arbitrators and preside at their meetings.

The death of any party shall not revoke or affect the authority or powers of the Arbitrator, Arbitrators or Umpire

respectively; and in the event of the death of an Arbitrator or Umpire, another shall in each case be appointed

in his stead by the party or Arbitrators (as the case may be) by whom the Arbitrator or Umpire so dying was

appointed.

The costs of the reference and of the award shall be in the discretion of the Arbitrator, Arbitrators or Umpire

making the award. And it is hereby expressly stipulated and declared that it shall be a condition precedent to

any right of action or suit upon this policy that the award by such Arbitrator, Arbitrators or Umpire of the

amount of the loss or damage if disputed shall be first obtained.

21. Time Limit

In no case whatever shall the Company be liable for any loss or damage after the expiration of twelve (12)

months from the happening of the loss or damage unless the claim is the subject of pending action or arbitration.

22. Notice

Every notice and other communication to the Company required by these Conditions must be written or printed.

23. Meaning

This Policy and the Schedule herein shall be read together as one contract and any word or expression to

which a specific meaning has been attached in any part of this Policy or of the said Schedule shall bear such

meaning wherever it may appear.

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MEMORANDA 1

This policy extends to include the following Memoranda:-

1. Premium Warranty

It is fundamental and absolute special condition of this contract of insurance that the premium due must be

paid and received by the insurer within sixty (60) days from the inception date of this policy/endorsement/

renewal certificate.

If this condition is not complied with then this contract is automatically cancelled and the insurer shall be

entitled to the pro rata premium on the period they have been on risk.

Where the premium payable pursuant to this warranty is received by an authorised agent of the insurer, the

payment shall be deemed to be received by the insurer for the purposes of this warranty and the onus of

proving that the premium payable was received by a person, including an insurance agent, who was not

authorised to receive such premium shall lie on the insurer.

2. Foundation Exclusion

The insurance on building(s) excludes that part of any building below the under* surface of its lowest floor

(and those parts of the concrete foundations for machinery which extend above such level).

Note 1 : *“upper” may be substituted for “under”.

Note 2 : The words in the brackets may be omitted.

3. Date Recognition

It is noted and agreed this policy is hereby amended as follows:-

(a) The Company will not pay for any loss or damage including loss of use with or without physical damage

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 of

the Insured 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:

(i) correctly recognize any date as its true calendar date;

(ii) 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

(iii) 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 the Company 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).

without physical damage or any consequential loss directly or indirectly arising from any advice, consultation,

design, evaluation, inspection, installation, maintenance, repair or supervision done by the Insured or for

the Insured 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 the Company 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 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.

This endorsement shall not exclude subsequent loss or damage or consequential loss which itself results

from an insured peril as defined in the policy.

Subject otherwise to the terms and conditions of the Policy.

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4. Property Damage Clarification Clause

Property damage covered under this Policy shall mean physical damage to the substance of property.

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 Policy

a. Loss of or damage to the data or software, but no limited to any detrimental change in data, software or

computer programs that is caused by deletion, a corruption or a deformation of the original structure, and

any business interruption losses resulting from such loss or damage. Notwithstanding this exclusion, loss

or damage to the data or software, which is the direct consequence of insured physical damage to the

substance of property, shall be covered.

b. Loss or damage resulting from an impairment in the function, availability, range of use or accessibility of

data, software or computer programs, and any business interruption losses resulting from such loss of

damage.

5. Radioactive / Nuclear Energy Risks Exclusion Clause

This insurance does not cover loss, damage, costs or expenses 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:-

(a) ionising radiations from or contamination by radioactivity from any nuclear fuel or from nuclear waste or

from the combustion of nuclear fuel;

(b) the radioactive, toxic, explosive or other hazardous or contaminating properties of any nuclear installation,

reactor or other nuclear assembly of nuclear component thereof.

force or matter.

6. Unvalued Policy Clause

This is an unvalued policy. The onus is on the Insured to prove the actual value of the Property insured at the

time of the happening of its destruction or the actual amount of such damage.

7. Restriction Of Spray Painting/Powder Spraying Warranty

(applicable to all manufacturing risks and workshops)

Warranted that during the currency of this Policy no spray painting/powder spraying or any process in connection

therewith be carried on in the premises described herein.

8. Electrical Installations Clause (A)

(applicable to all manufacturing risks and workshops)

This Company is expressly declared to be free from liability for loss of or damage to, any electrical machine,

apparatus, or any portion of the electrical installation arising from or occasioned by over-running, excessive

pressure, short-circuiting, self- heating, arcing or leakage of electricity from whatever cause (lightning included)

arising.

Provided that this exemption shall only apply to the particular electrical machine, apparatus, or portion of the

electrical installation so affected, and not to other machines, apparatus or electrical installation destroyed or

damaged by fire set up by such particular machine, apparatus or other electrical installation.

Subject otherwise to the terms and conditions of the policy.

9. Sanction Exclusion Clause

No insurer shall be deemed to provide cover and no insurer shall be liable to pay any claim or provide any

benefit hereunder to the extent that the provision of such cover, payment of such claim or provision of such

benefit would expose the insurer to any sanction, prohibition or restriction under the United Nations’ Security

Council resolutions (UNSC).

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10. Clean Up Cost (Non Tariff)

The indemnity under this Policy extends to include all costs and expenses necessarily and reasonably incurred

in clearing and/or repairing drains, gutters, pits, sewers and the like, at or in the vicinity of the Property Insured,

consequent upon an insured loss.

The indemnity hereunder shall not exceed 10% of loss or maximum RM10,000 for each and every loss

indemnified under the Policy.

11. Cost of Temporary Protection (Non Tariff)

It is hereby declared and agreed that this Policy is extended to cover the cost of temporary protection,

reasonably and necessarily incurred for the safety and protection of the premises pending repair/replacement

of damage caused by insured perils up to a limit of 10% of loss or maximum RM10,000.

12. Expediting Expenses (Non Tariff)

The indemnity provided under this Policy extends to include the extra charged, cost and expenses for

overtime, night work, work on public holidays, express freight, air freight, custom duties and the like, reasonably

incurred by the Insured in the reinstatement, replacement or repair of the Insured Property.

Provided that the Company’s liability under this memorandum for additional costs shall not exceed 10% of

loss or maximum RM20,000 in all.

13. Goods And Or Property Kept In The Open (Non Tariff)

It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions

contained in the Policy or endorsed thereon, the Company shall indemnify the Insured for loss of or damage

to goods kept in the open but within fenced compound provided that the Insured have taken all reasonable

safety measures to safeguard the property thereat.

Provided always the Company's maximum liability shall not exceed the sum stated in the Schedule for which

the Item(s) is/are insured.

14. Non-Invalidation (Non Tariff)

This Insurance shall not be invalidated by any change of occupancy or increase of risk taking place in the

property insured without the Insured’s knowledge provided that they shall immediately on the same coming

to their knowledge advise the Company and pay any additional premium that may be required from the date

of such increase of risk.

15. Plan And Specification Clause (Non Tariff)

The Policy is extended to indemnify the Insured in respect of the cost of re-writing or re-drawing plans or

specifications of the property insured in this Policy when such plans or specifications are lost or damage by

any cause not excluded by this Policy and the Insured needs to have them re-drawn or re-written for

reinstatement following an insured loss.

The liability of the Company under this clause shall be restricted to RM50,000 any one loss and in the

aggregate.

16. Property Or Welfare, Sports and Social Club (Non Tariff)

It is hereby declared and agreed that this Policy extends to cover property or welfare, sport and social clubs

belonging to the Insured (unless specified in the Schedule) provided that the loss or damage by an insured

peril, occurs within the described Insured’s premises.

The liability of the Company under this clause shall be restricted up to RM5,000 any one loss and in the

aggregate.

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17. Transmission and Distribution Lines Exclusions Clause (Non Tariff)

All above ground transmission and distribution lines, including wire, cables, poles, pylons, standard, towers,

other supporting structures and any equipment of any type which may be attendant to such installation of any

description, for the purpose of transmission or distribution of electrical power, telephone or telegraph signals,

and all communication signals whether audio or visual.

This exclusion applies to all equipment other than on or within 1,000 meters from an insured structure and/or

premises.

This exclusion applies both to physical loss or damage to the equipment and all business interruption,

consequential loss, and/or other contingent losses related to transmission and distribution lines. However, it

is agreed that public utilities extension is not subject to this exclusion.

18. Waiver of Subrogation (Non Tariff)

In the event of a claim arising under this Policy, the Company agrees to waive any rights, remedies or relief to

which they might become subrogated against any company standing in the relation of Parent to the Subsidiary

or of Subsidiary to Parent to the Insured or any company who is Subsidiary of a Parent Company of which the

Insured are themselves a subsidiary.

19. Fire Extinguishing Expenses (Non Tariff)

It is hereby agreed and declared that notwithstanding anything within the Policy contained to the contrary and

subject to the Provisos hereinafter contained, the Insurance under this Policy extends to include:

a) The cost of replenishment of the firefighting appliances and destruction of or damage to such appliances

(including employees’ clothing and personal effects) unless otherwise specifically insured.

b) Wages of the Insured’s employees other than full-time members of a Works Fire Brigade.

c) Fire Brigade charges.

Provided that the liability of the Company in respect of such costs shall be limited to those necessarily and

reasonably incurred in extinguishing fire at or adjoining the situation of the property insured by this Policy

or immediately threatening to involve such property, subject to a maximum limit of RM10,000.

20. Undamaged Property (Non Tariff)

If for the purpose of reinstating Property Insured damaged by an insured peril it is necessary to demolish,

damage or remove any property or, part unharmed by that peril, the Insurers shall Indemnify the Insured for

the cost of doing so. The Insurers shall also indemnify the Insured for the cost of reinstating the said property

or part to a condition the same as but not better nor more extensive than its condition immediately prior to the

demolition, damage or removal.

21. Trace & Access Clause (Non Tariff)

The Indemnity under this Policy extends to include costs and expenses incurred by or on behalf of the Insured

in respect of cost necessarily and reasonably incurred for locating the sourceand subsequent making good,

including when resulting from escape of water, of any loss, destruction or damage insured against hereunder.

The indemnity hereunder shall not exceed RM50,000 each and every claim.

22. Claims Preparation Clause (Non Tariff)

The indemnity under this policy extends to include all costs and expenses necessarily incurred for preparing,

producing and certifying of claims documents and information as may be required by the Insurer, including but

not limited to, fees of loss assessors incurred in the preparation of claims for submission following an indemnifiable

loss insured by this Policy. Notwithstanding the above, all litigation costs are hereby strictly excluded from this

extension.

The Insurer shall only be liable for a maximum amount of RM10,000 any one loss.

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MEMORANDA 2

This Policy extends to include the following Warranty(s) / Clause(s) only when specified in the Schedule:-

(i) Warranty

1. RESTRICTION OF MERCHANDISE WARRANTY

Warranted that during the currency of this Policy no part of the premises described herein be used for the

manufacture or deposit or storage of merchandise.

1A. RESTRICTION OF MERCHANDISE WARRANTY

(Club/School/Office)

Warranted that during the currency of this Policy no part of the premises described herein be used for the

manufacture or deposit or storage of merchandise except in direct relation to the activities of a club, school

or office.

1B. RESTRICTION OF MERCHANDISE WARRANTY

(Not exceeding 10% of total floor area)

Warranted that during the currency of this Policy not more than 10% of the total floor area of the premises

insured herein be used for the manufacture or deposit or storage of merchandise.

1C. RESTRICTION OF MERCHANDISE WARRANTY

(Not exceeding 20% of total floor area)

Warranted that during the currency of this Policy not more than 20% of the total floor area of the premises

insured herein be used for the manufacture or deposit or storage of merchandise.

1D. RESTRICTION OF MERCHANDISE WARRANTY

(Not exceeding 50% of total floor area)

Warranted that during the currency of this Policy not more than 50% of the total floor area of the premises

insured herein be used for the manufacture or deposit or storage of merchandise.

2. DETACHED BUILDING WARRANTY

Warranted that during the currency of this Policy the building (containing the property)* insured by (Item

No..........of)* this Policy is detached by at least# ..........metres/feet on all sides from any other building

(excluding small outhouses).

Note : 5 metres where the building is of Construction Class 1A or 1B

6 metres where the building is of Construction Class 2

10 metres where the building is of Construction Class 3

3A. STORAGE OF HAZARDOUS GOODS WARRANTY A

Warranted that during the currency of this Policy, storage in the premises of the following materials is

permitted only up to the limit of quantities stated below, namely:-

i) All liquids including kerosene oil and 3600 Litres

diesel giving off flammable vapour with (800 gallons)

flashpoint not more than 93˚C (200F)

ii) All liquids including petrol giving off 900 Litres

flammable vapour with flashpoint below (200 gallons)

38˚C (100F)

iii) Matches, carbides, liquified petroleum 30kg or 4

gas (LPG) spontaneously combustion cases or

materials such as silane, sulphur, etc. cartons

and active materials such as magnesium, whichever is

sodium, etc. higher.

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3B. STORAGE OF HAZARDOUS GOODS WARRANTY B

Warranted that during the currency of this Policy, the storage of goods and the quantity of the goods stored

in or upon the within mentioned premises are in compliance with the Regulations and Laws of Malaysia.

4A. STORAGE OF PETROL WARRANTY

Warranted that during the currency of this Policy the storage of petrol be in accordance with the Government

Regulations.

4C. PRINTING PROCESS WARRANTY

Warranted that during the currency of this Policy no printing or any process in connection therewith be

carried on in the premises described herein.

6. MOTOR VEHICLE REPAIRS WARRANTY

Warranted that during the currency of this Policy no repair work of any kind on motor vehicles and

agricultural implements be carried on in the premises described herein.

7. SOLVENT EXTRACTION WARRANTY

Warranted that during the currency of this Policy no solvent extraction be carried on in the within described

premises.

8A. SMOKING, DRYING OR STORAGE OF RUBBER WARRANTY

Warranted that during the currency of this Policy no smoking, drying or storage of prepared rubber be

carried on in the premises described herein but allowing the storage of liquid latex.

8B. SMOKING OR DRYING OF RUBBER BY ARTIFICIAL HEAT WARRANTY

Warranted that during the currency of this Policy no smoking of rubber or drying by artificial heat be carried

on in the premises described herein.

8C. DRYING BY ARTIFICIAL HEAT WARRANTY C

Warranted that during the currency of this Policy no drying by artificial heat be carried on unless the

furnace for heating and its flues be entirely outside the premises or separated therefrom by a brick, stone

or concrete wall not less than 4 1/2 inches thick passing through the roof, without openings except such

as may be necessary for metal pipes, and the heat conveyed by steam, hot water or hot air not directly

drawn from the furnace fire or from flue gases.

9. REMOVAL AND BURNING OF WOOD WASTES WARRANTY

Warranted that during the currency of this Policy:-

a) all shavings, sawdust and other refuse be removed from the premises regularly but not less than

three (3) times a week and not allowed to accumulate.

b) no shavings, sawdust or other refuse be burned (other than in a brick incinerator or furnace used

in connection with the insured's business) within 30 metres (100 feet) of any building forming part

of the insured premises.

10. BURNING OF SAWDUST (WITHIN 100 FEET) WARRANTY

Warranted that during the currency of this policy :

(i) no power (other than electric) ; and

(ii) no artificial heat be used ; and

(iii) that shavings, sawdust and refuse be removed daily from the premises and be not burned (other

than in a brick incinerator or furnace used in connection with the Insured's business) within 30 metres

(100 feet) thereof.

11A. STORAGE OF UNHEWN LOGS (WITHIN 15 METRES) WARRANTY

Warranted that during the currency of this Policy no unhewn logs be stored or stacked within 15 metres

(50 feet) of the sawmill.

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11B. STORAGE OF SAWN TIMBER (WITHIN 100 FEET) WARRANTY

Warranted that during the currency of this Policy no sawn timber be stored or stacked within 30 metres

(100 feet) of the sawmill.

12. VACANT RISK WARRANTY

Warranted that at no time during the currency of this Policy shall the premises described herein be used

for the storage or deposit of goods of any kind or for any other purpose whatsoever.

It is further warranted that all doors, windows and/or other openings shall be so secured at all times as

to prevent entrance by any unauthorised person or persons.

13A. PLASTICS WARRANTY A

Warranted that during the currency of this Policy no raw materials for the manufacture of plastics other

than protein based resins; products based on formaldehyde or other aldehydes; polyamide resins;

polycarbonate based resins; silicone resins; fluorocarbons; polyester resins including alkyd resins,

polyvinyl acetate; polyvinyl butyrate; epoxy resins, amino resins will be used or stored in the within

described premises.

13B. PLASTICS WARRANTY B

Warranted that during the currency of this Policy no raw materials for the manufacture of plastics other

than protein base resins; products based on formaldehyde or other aldehydes; polyamide resins;

polycarbonate based resins; silicone resins; fluorocarbons; polyester resins including alkyd resins;

polyvinyl acetate; polyvinyl butyrate; epoxy resins; amino resins; polystyrene; acetal resins; acrylic resins;

acrylonitrile butadeine styrene (A.B.S) resins; ethyl cellulose; polypropylene; polythene/polyethylene;

methyl methadrylate; cellulose acetate; cellulose acetate butyrate; cellulose propionate; polymethyl

methacrylate; polyvinyl chloride will be used or stored in the within described premises.

13C. PLASTICS WARRANTY C

Warranted that during the currency of this Policy no nitrocellulose based plastics or foamed or expanded

plastics be manufactured, used or stored in the within described premises.

14. FUEL STORAGE TANKS INSTALLATIONS WARRANTY

Warranted that during the currency of this Policy the Fuel Storage Tank Installations comply with the

following regulations:-

(a) Tanks must be of steel and placed at least 2 feet below the surface of the ground and must be filled

only from the open through oil-tight pipes fitted with screwed caps or valves.

(b) Motor vehicles must stand in the open when their tanks are being filled.

Note: The filling of tanks under balconies or verandahs is not to be considered as non-compliance with

(a) and (b) above.

15. STORAGE TANK INSTALLATIONS WARRANTY

Warranted that during the currency of this Policy no mineral or rock oils or liquid products or mixtures

thereof giving off an inflammable vapour below 150 F (closed cup test) shall be stored or deposited in,

or within 50 feet of any tank, barrels, tins or drums insured or the contents of which are insured hereby.

16. CURING BARNS (SOURCE OF FUEL) WARRANTY

Warranted that during the currency of this Policy the furnaces and/or stoves of the curing barns are fired

by gas, oil and/or electricity.

17. MANUFACTURE AND STORAGE OF PAINTS, ETC. WARRANTY

Warranted that during the currency of this Policy no manufacturing or storage of oil paints, enamels,

lacquers, varnishes, varnish stains, cellulose paints or paint thinners, removers or renovators be carried

on within the insured premises.

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18. USE & STORAGE OF FOAMED PLASTICS AND FOAMED RUBBER WARRANTY

Warranted that during the currency of this Policy no foamed plastic or foamed rubber or goods made

therefrom be used or stored.

19. REGULAR INSPECTIONS WARRANTY

Warranted that during the currency of this Policy the premises be inspected at the end of each day for

smouldering matches, obacco or other materials and signed reports made thereon by the employee(s)

responsible for such inspection. The reports to be examined at least once each week by the Management.

20. BITUMINOUS MATERIALS/SOLVENTS WARRANTY

Warranted that during the currency of this Policy no bituminous material and/or solvents having a flash

point (closed cup test) below 32˚C (90 F) be used or stored within the insured premises.

22. LIQUIFIED PETROLEUM GASES WARRANTY

Warranted that during the currency of this Policy, relevant government regulations dealing with storage

or use of liquified petroleum gases shall be complied with at all times

23. USE OF ELECTRICITY AND/OR SOLAR POWER ONLY WARRANTY

Warranted that during the currency of this Policy, no power other than electricity and/or solar power be

used for heating purposes.

24A. SPRAY PAINTING WARRANTY (A)

Warranted that during the currency of this Policy in the part of the premises used for spray painting*:-

(a) No cleaning off, mixing, spray painting*, or other process connected therewith, be carried on

except in the open or in a separate building or compartment exclusively reserved for such work

and adequately ventilated to the open by means of an exhaust fan or fans with sufficient fresh air

inlets located near floor level, and that not more than one day's supply of paint, lacquer, solvent,

diluent, or thinner be deposited therein.

Compartments should be constructed of brick and/or cement concrete having floor and roof (including

any supports) of incombustible materials and any communications should be fitted with door(s) of

hardwood or of incombustible material.

(b) All paints, lacquer, petrol, solvents, diluents, and thinners, be stored in a building used exclusively

for that purpose or in a brick and/or cement concrete built compartment having floor and roof, including

any supports of incombustible material, any communication having a closely fitting door or hardwood

or of incombustible material.

process and that emptying and charging of the reservoir shall only be done in the open air.

(d) No artificial lighting, other than explosion-proof or flame-proof electric lights, be used.

(e) All places where dry deposit can accumulate will be cleaned every week with stiff fibre or nonferrous

metal brushes or scrapers and the residue placed in water.

(Note*: To be replaced with the words "spray painting and powder spraying in the event the risk involve

two processes).

24B. SPRAY PAINTING WARRANTY (B)

In consideration of the payment of an additional premium, it is hereby agreed that spray painting* is

allowed to be c arried on in the premises described herein.

(Note*: To be replaced with the words "spray painting and powder spraying" in the event the risk involve

two processes).

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25A. POWDER SPRAYING WARRANTY (A)

Warranted that during the currency of this policy in the part of the premises used for powder spraying :-

(a) No cleaning off, mixing, powder spraying or other process connected therewith, be carried on except

in the open or in a separate building or compartment exclusively reserved for such work and an

adequate means of ventilation/pneumatic extraction system should be provided.

(b) All electrical lightings and fittings in the powder spraying compartment should be of explosion/flame

proof types and no artificial lightings and other spark producing equipments should be used in the

compartment.

metal brushes or scrappers and the residue placed in water.

25B. POWDER SPRAYING WARRANTY (B)

In consideration of the payment of an additional premium, it is hereby agreed that powder spraying is

allowed to be carried on in the premises described herein.

27. SILENT RISK WARRANTY

Warranted that during the currency of this policy the said industrial risk be silent and that the machinery

be not worked (except occasionally for the purpose of keeping it in order, no material being passed

through it) and that no repairs to machinery or millwrights' work, be carried on.

It is further warranted that the insured premises not be used for the storage or deposit of goods.

(ii) Clause

AGGREGATE CONDITION OF AVERAGE CLAUSE

It is hereby noted and agreed that notwithstanding the declaration of individual sums insured within the policy,

policy condition 20 of this policy will apply as though reference to property therein is in respect of all properties

of the same insured at the same location insured therein. Accordingly, the sentence "Every item, if more than

one, of the Policy shall be separately subject to this condition" appearing in the text of condition 20 is deemed

to have been deleted.

AGREED VALUE ENDORSEMENT FOR ART OBJECTS/PAINTINGS, ANTIQUES AND SUCH LIKE ITEMS

It is hereby declared and agreed that in the event of the undernoted item(s) of property insured being totally

lost, destroyed or damaged by any peril insured against, the liability of the insurers shall not exceed the

corresponding agreed value stated in the schedule below :-

Property Insured Agreed Value

(As specified under the policy Schedule)

Notwithstanding anything contained in this policy to the contrary, where any insured items consist of articles

in a pair or set, the Company shall not be liable to pay more than the proportionate value of any particular

parts which may be lost, without reference to any special value which such article or articles may have as

part of such pair or set.

Subject otherwise to the terms exceptions and conditions of the policy.

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ALTERATIONS AND REPAIRS CLAUSE

Notwithstanding condition 9(a), workmen are allowed on or about the insured property to carry out alterations

and repairs provided the trade, manufacture, nature of occupation and/or construction of the building remains

unchanged.

APPRAISEMENT CLAUSE

If the aggregate claim for any one loss does not exceed RM5,000 or 5% of the sum insured whichever is the

lesser amount by the item or items affected no special inventory or appraisement of the undamaged property

shall be required.

If two or more buildings be included in a single item, this provision shall apply to the range of buildings and/or

contents by the item or items affected.

ARCHITECT'S, SURVEYOR'S, ENGINEER'S AND COUNSULTANT'S FEES

(WITH SEPARATE SUM INSURED) APPLICABLE TO ITEM(S) NO(S):

The insurance by this item(s) is in respect of Architect's, Surveyor's and Consulting Engineer's fees for

estimates, plans, specifications, quantities, tenders and supervision necessarily incurred in the reinstatement

of the property insured consequent upon its destruction or damage by fire or other peril hereby insured 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 insured on this item(s).

ARCHITECT'S SURVEYOR'S, ENGINEER'S AND CONSULTANT'S FEES

(WITHOUT SEPARATE SUM INSURED)

The insurance on buildings, plant and machinery hereby insured includes Architect's, Surveyor's and Consulting

Engineer's fees for estimates, plans, specifications, quantities, tenders and supervision necessarily incurred

in the reinstatement of the property insured consequent upon its destruction or damage by fire or any other

peril hereby insured 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 Company's maximum liability for any loss

damage and fees not exceeding the sum insured against each item.

AUTOMATIC HOLD COVER

(PROPERTIES IN NEW LOCATIONS) CLAUSE

It is understood and agreed that any additional properties situated in locations within Malaysia not insured by

the Policy which may be acquired by the Insured during the currency of this Policy is automatically held covered

up to 10% of the Policy limit or RM1million, whichever is the lower, provided that the Insured shall advise the

Company within 30 days of any acquisition of any such properties and shall pay the additional premium from

effective date of acquisition.

Subject otherwise to the terms, exceptions and conditions of the Policy.

AUTOMATIC RENEWAL CLAUSE

This Policy is deemed to be automatically renewed and the appropriate premium charged upon expiry unless

otherwise instructed.

BRAND, LABEL AND TRADEMARK CLAUSE

In the case of damage to property bearing a brand, label or trademark, the sale of which in any way carries a

guarantee of the Insured, the salvage value of such damaged property shall be determined after the removal

in the customary manner of all brands, labels and any trademarks which might be taken to indicate that the

guarantee of the manufacturer or the Insured attaches to the said property.

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PAGE 19 OF 50

CAPITAL ADDITIONS CLAUSE

(Not applicable to stock-in trade or merchandise not to insurance where the total sum insured is less than

RM1,500,000/=) The insurance hereby extends to cover alterations, additions and improvements (but not

appreciation in value in excess of the sum insured) to property specified in (Item(s) No(s) ................ of) this

policy for an amount not exceeding in respect of each item 10% of the sum insured by each item or RM1,000,000

per location whichever is the less.

The Insured undertakes to advise the Company every three months of such alterations, additions and

improvements and to pay the appropriate additional premium thereon. The Clause is inoperative if the

declaration of such alterations, additions and improvements is not received by Insurers within 90-days from

the date of such alterations, additions and improvements.

For the purpose of this Clause, the inception date under the Premium Warranty shall be deemed to be the

date of declaration received by the Company.

Note: In the event that there is more than one location, then the limit may be increased to RM2,000,000, this

amount being the aggregate limit for all the locations.

COINSURANCE AND LEADER CLAUSE

It is hereby declared and agreed notwithstanding anything contained in the within policy, or on any endorsement

hereon to the contrary that any reference to "the Company" shall be deemed to mean the following Companies

each of which agrees for its individual proportion set against its name subject to the terms, exceptions and

conditions herein or attached hereto or endorsed hereon, that if during the period of insurance stated in the

Schedule the Insured shall sustain loss or damage in the circumstances provided for by this Policy indemnify

the Insured in the manner herein described:

Company Policy No. Proportion Signature

It is further declared and agreed notwithstanding anything contained to the contrary that the lead co-insurer,

is authorised to sign the Policy/Endorsement/Renewal Receipt.

For all intents and purposes this policy shall have effect as though each of the above-mentioned insurance

companies had issued a separate policy for its individual proportion of the sum insured.

COINSURANCE CLAUSE (For dealings with Takaful Companies)

It is further agreed that the Following Insurer shall be subject to and follow the same intention, risks, terms

and conditions, warranties, clauses, valuation, amendments or alterations of any description or any decision

as may be made by the Lead Insurer irrespective of any variation or difference in terminology under either the

Financial Services Act 2013 or the Islamic Financial Services Act 2013 as the case may be or as applicable

therefore.

Notwithstanding that the Insurers hereby attest to the intention and meaning of the Special Memorandum as

lodged with them, the Lead Insurer shall be entitled to investigate settle compromise control discharge or

repudiate any claims and to institute prosecute defend settle and compromise any proceedings in respect of

any risks and/or interest arising from this Policy and/or under the applicable provisions of either the Financial

Services Act 2013 or Islamic Financial Services Act 2013 or both as the case may be or as applicable therefore.

Company Policy No. Proportion Signature

FFFEFI001-Q-0518

PAGE 20 OF 50

1 .................................................... As per policy schedule

(as the Lead Insurer) in compliance with

the Financial Services Act 2013 and the

general principles of Insurance Law)

2 .................................................... As per policy schedule

(as the Following Insurer and also as the

Co Takaful as per Certificate No. under

the Islamic Financial Services Act 2013

and in compliance with the Syariah Principles)

SPECIAL MEMORANDUM

The Special Memorandum serves to encapsulate the intentions and arrangements that were discussed and

agreed upon between the parties as set below and with whom it shall be lodged with without altering reducing

or amending the rights and duties of each party under the Insurance Policy Nos. …............. or Co Takaful

Certificate Nos. …................... issued or signed accordingly under the provisions of the Financial Services

Act 2013 and/or Islamic Financial Services Act 2013.

It has been agreed that:

1. For the purpose of determining any liability to indemnify the Insured under a policy of insurance including

as prescribed by any endorsements attaching thereto, all parties shall primarily refer to a policy or

conventional language as normally issued under the provisions of the Financial Services Act 2013 and

signed on by all insurers for their respective share of participation of such liability, all loss or damage

provided for by this Policy.

5. The Insurers shall agree to nominate an internationally recognised and registered loss adjuster or panel

of such loss adjusters which is/are acceptable to the Insured.

COMPUTER SYSTEMS RECORDS

Computer systems records are insured only for the value of the materials together with the cost of clerical

labour and computer time expended in reproducing such records (excluding any expenses in connection with

the production of information to be recorded therein) and not for the value of the information contained therein.

CONTRACT PRICE

Notwithstanding anything to the contrary contained in Condition 17 of the Policy, it is hereby declared and

agreed that in respect only of goods sold but not delivered for which the insured is responsible and with regard

to which under the conditions of the sale, the sale contract is cancelled by reason of the fire or any other peril

hereby insured against, either wholly or to the extent of the loss or damage, the liability of the Company shall

be based on the contract price, and for the purpose of calculating the venue of all goods to which this clause

would in the event of destruction or damage be applicable the same basis shall be used.

DEDUCTIBLES AND EXCESS CLAUSE

It is hereby declared and agreed that the deductibles and/or excess as specified in the schedule and/or

endorsement and/or clauses attaching to this policy shall be applied in the following manner and as ascertained

after the application of any condition of average :-

(a) only one deductible and/or excess, as may be applicable, will be applied for each and every loss or losses

arising out of one event, irrespective of the number of co-insurers;

(b) the deductible and/or excess shall be apportioned amongst the co-insurers;

each co- insurer;

(d) in no event shall the insured be liable to bear more than one policy deductible and/or excess as the case

may be.

Subject otherwise to the terms, conditions and exceptions of this Policy.

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PAGE 21 OF 50

DESIGNATION CLAUSE

For the purpose of determining where necessary the item (column heading) under which any property

is insured, the Company agrees to accept the designation under which such property is entered in the

insured's books.

ESCALATION CLAUSE

In consideration of the payment of an additional premium amounting to 50% of the premium produced by

applying the specified percentage to the first or the annual premium as appropriate on the undernoted item(s),

the sum(s) insured thereby shall, during the period of insurance, be increased each day by an amount

representing 1/365th of the specified percentage increase per annum.

Item Number Specified percentage increase per annum

Unless specifically agreed to the contrary the provisions of this Clause shall only apply to the sums insured in

force at the commencement of each period of insurance.

At each renewal date the Insured shall notify the Insurers:-

i) the sums to be insured under each item above, but in the absence of such instructions the sums insured

by the above items shall be those stated on the Policy (as amended by any endorsements effective prior

to the aforesaid renewal date) to which shall be added the increases which have accrued under this

clause during the period of insurance up to that renewal date, and

ii) the specified percentage increase(s) required for the forthcoming period of insurance, but in the absence

of instructions to the contrary prior to renewal date the existing percentage increase shall apply for the

period of insurance from renewal.

All the conditions of the Policy except insofar as they may be hereby expressly varied shall apply as if they

had been incorporated herein.

FLOATING INSURANCE

(a) Specified locations

The stocks insured under (item.. of) this Policy is subject to a floating sum insured declared hereon

against all the locations as specifically described in the schedule.

Provided always the Company's maximum liability shall not exceed the floating sum insured stated in the

schedule for which the item is insured.

Note: The premium charged thereon shall be calculated based on the highest amongst the rates applicable

to the said locations concerned.

(b) Unspecified locations

The stocks insured under (item.....of) this Policy is subject to a floating sum insured declared hereon all

the locations owned and/or occupied by the Insured anywhere in Malaysia.

Provided always that :-

(i) there shall be a minimum of ten (10) locations covered under this item in the policy.

(ii) the sum insured any one location shall not exceed the limit of RM500,000.

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PAGE 22 OF 50

In the event of any loss or damage, the Company's maximum liability shall not exceed the sum of

RM500,000 for any one of the unspecified location and the floating sum insured declared hereon in

respect of all the unspecified locations covered under the policy.

Note : (i) The total sum insured floating for the unspecified locations shall be greater than RM500,000

(ii) The premium charged is subject to a 25% loading on the highest rate applicable on the policy.

The stocks insured under (item.....of) this Policy is subject to a floating sum insured declared hereon

against all the locations owned and/or occupied by the Insured anywhere in Malaysia.

Provided always that :

(i) there shall be a minimum of one thousand (1,000) locations under this item at inception of the Policy.

(ii) the sum insured limit per unit of stock shall not exceed RM5,000.00

(iii) the Insured shall declare to the Company in writing the total value of the stocks within thirty days of

the...... (insert the appropriate day or date) of each calendar month.

(iv) the basis of value for declaration shall be the full value of the stocks insured, any loss shall be settled

on the basis of the market value immediately anterior to the loss.

In the event of any loss or damage, the Company's maximum liability shall not exceed the sun insured

limit of RM5,000 per unit of stock and the floating sum insured declared hereon in respect of all the

unspecified locations covered under the Policy.

GOODS AND STOCKS UNDERGOING ANY HEATING OR DRYING PROCESS ENDORSEMENT

Notwithstanding anything to the contrary contained in Condition 5(i)(b) of the Policy, it is hereby understood

and agreed that the insurance under item no: .................. of this Policy shall extend to include loss or damage

to the property occasioned by its undergoing any heating or drying process provided that loss or damage due

to smoke, fumes, scorching, charring, chemical reaction, change of state or original composition or discolouration

of the property is excluded.

HIRE PURCHASE ENDORSEMENT

It is hereby understood and agreed that .............(hereinafter referred to as the Owners) are the owners of the

property insured by item(s) ............ and that such property is the subject of a Hire Purchase Agreement made

between the Owners of the one part and the Insured of the other part. It is further understood and agreed that

any payment made in respect of loss or damage (which loss or damage is not made good by repair, reinstatement

or replacement) under the terms of this Policy shall be made to the Owners as long as they are the owners of

the property and their receipt shall be full and final discharge to the Company in respect of such loss or damage.

It is understood and agreed that notwithstanding any provision in the Hire Purchase Agreement to the contrary

this Policy is issued to the Insured namely: ............................. as the principal party and not as agent or trustee

for the Owners and nothing herein shall be construed as constituting the Insured, as agent or trustee for the

Owners or as an assignment (whether legal or equitable) by the Insured to the Owners of his rights, benefits

and claims under this Policy.

Non-Cancellation Clause

And it is further agreed that cancellation of the Policy shall not be effected by the insured except upon prior

notification to the Owner in writing giving fourteen (14) days notice to the last known address of the Owner.

INTERNAL REMOVAL CLAUSE

It is understood and agreed that in the event of removal of property from one building to another at any of the

aforesaid situations being inadvertently not advised to the Company the insurance on such property shall

follow removal, the necessary adjustments in sum insured and premium being made as from the date of

removal as soon as the oversight is discovered.

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LEASING ENDORSEMENT

It is hereby understood and agreed that ..................(hereinafter referred to as the lessors) are the owners of

the property insured by item ................... and that such property is the subject of a Leasing Agreement made

between the lessors of the one part and the insured of the other part and it is further understood and agreed

that the lessors are interested in any monies which but for this endorsement could be payable to the insured

under this policy in respect of loss of or damage to the property (which loss or damage is not made good by

repair reinstatement or replacement under the terms of the policy) and such monies shall be paid to the lessors

as long as they are the owners of the property and their receipt shall be a full and final discharge to the

company in respect of such loss or damage. Save as by this endorsement expressly agreed nothing herein

shall modify or affect the rights and liabilities of the insured or the company respectively under or in connection

with this Policy.

Non-Cancellation Clause

And it is further agreed that cancellation of the Policy shall not be effected by the insured except upon prior

notification to the Lessor in writing giving fourteen (14) days notice to the last known address of the Lessor.

MORTGAGEE (CHARGEE) CLAUSE 1

Loss, if any, payable to ............. as Mortgagee (Chargee) as interest may appear in this insurance, 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 Policy, or by the non-occupation thereof, or by any other increase of risk taking place in the

property insured hereunder, Provided that in case the Mortgagor (Chargor) or Owner shall neglect to pay any

premium due under this Policy the Mortgagee (Chargee) shall on demand pay the same. Provided also that

the Mortgagee (Chargee) shall notify the Company of 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 Policy it shall be noted thereon and the Mortgagee (Chargee) shall on demand pay

the premium for such increased hazard for the term thereof otherwise this Policy shall be null and void.

And it is further agreed that whenever the Company shall pay the said Mortgagee (Chargee) any sum in

respect of loss or damage under this Policy and shall claim that as to the Mortgagor (Chargor) or Owner no

liability therefor existed, the Company 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 insured hereunder of from any securities or funds available.

Non-Cancellation Clause

And it is further agreed that cancellation of this Policy shall not be effected by the insured except upon prior

notification to the Mortgagee (Chargee) in writing giving fourteen (14) days notice to the last known address

of the Mortgagee (Chargee).

Note: When the interest is that of Chargee and Chargor the words in brackets are deemed to be inserted in

place of Mortgagee and Mortgagor.

MORTGAGEE (CHARGEE) CLAUSE 2

It is hereby agreed that this Insurance {as to the interest of the Mortgagee (Chargee)} shall not be invalidated

by any change of occupancy or increase of risk taking place in the property insured without the knowledge of

the Mortgagee (Chargee) provided that the Mortgagee (Chargee) shall immediately on the same coming to his

knowledge, give notice thereof to the Company and pay the additional premium (if any) which may be required

by the Company from the date of such increase of risk.

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Non-Cancellation Clause

And it is further agreed that cancellation of this Policy shall not be effected by the insured except upon prior

notification to the Mortgagee (Chargee) in writing giving fourteen (14) days notice to the last known address

of the Mortgagee (Chargee).

Note: When the interest is that of Chargee and Chargor the words in brackets are deemed to be inserted in

place of Mortgagee and Mortgagor.

OTHER CONTENTS CLAUSE

It is agreed that the term "Other Contents" in so far as they are not otherwise insured is understood to include:-

a) Money and stamps not otherwise specifically insured for an amount not exceeding RM ................

b) Documents, manuscripts and business books but only for the value of the materials as stationery, together

with the cost of clerical labour expended in writing up, and not for the value to the Insured of the information

contained therein and for an amount not exceeding RM ................. in respect of any one documents,

manuscript or business book.

c) Computer systems records but only for the value of the materials together with the cost of clerical labour

and computer time expended in reproducing such records (excluding any expenses in connection with

the production of information to be recorded therein) and not for the value to the Insured of the information

contained therein for an amount not exceeding RM..................

d) Patterns, models, moulds, plans and designs, for an amount not exceeding RM ....................... in respect

of any one pattern, model, mould, plan or design.

e) Employees' pedal cycles, clothing, tools and other personal effects for an amount not exceeding

RM .................. in respect of any one Employee.

Note: The monetary limit of RM1,000 maximum for items (a) to (e) are obligatory. Paragraph (e) may be

omitted entirely if it is not desired to insure such property.

OTHER INSURANCE CLAUSE

It is understood and agreed that the insured shall be deemed to have complied with condition no. 3 of this

policy provided that he has declared to the company the total amount of insurance effected with other Insurance

Companies on the property hereby insured.

OUTBUILDING CLAUSE

The insurance by each item under Buildings is understood to include walls, gates and fences, small outbuildings,

extensions, annexes, exterior staircase, fuel installations, steel or iron frameworks and tanks in the said

premises and the insurance by each item under Contents extends to include the contents of each outbuilding.

PAIRS AND SETS CLAUSE

It is hereby declared and agreed that notwithstanding anything contained in this policy to the contrary, where

any insured item consists of articles in a pair or set, the Company shall not be liable to pay more than the

proportionate value of any particular part or parts which may be lost, without reference to any special value

which such article may have as part of such pair or set.

Subject otherwise to the terms exceptions and conditions of the Policy.

PAWNBROKERS

In the event of destruction or damage to pledged goods by fire or any other peril hereby insured against the

amount payable shall not exceed the amount advanced by the insured on such goods plus 25% and the value

of all goods which this clause applies shall be calculated on the same basis.

REINSTATEMENT VALUE CLAUSE

Notwithstanding anything to the Contrary contained in Condition 17 of the Policy, it is hereby declared and

agreed that in the event of the property insured under (items Nos .............. of) the within Policy being destroyed

or damaged, the basis upon which the amount payable under (each of the said items of) the Policy 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 insured property when new, subject to the following Special

Provisions and subject also to the terms and conditions of the Policy except insofar as the same may be

varied hereby.

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SPECIAL PROVISIONS

1. The work of replacement or reinstatement (which may be carried out upon another site and in any manner

suitable to the requirements of the Insured subject to the liability of the Company not being thereby

increase) 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 the Company

may (during the said 12 months) in writing allow otherwise no payment beyond the amount which would

have been payable under the Policy if this memorandum had not been incorporated therein shall be made.

2. Until expenditure has been incurred by the Insured in replacing or reinstating the property destroyed or

damaged the Company shall not be liable for any payment in excess of the amount which would have

been payable under the Policy 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 insured thereon at the breaking out of any fire or at the commencement of any destruction of or

damage to such property by any other peril insured against by this Policy, then the Insured shall be

considered as being his own insurer for the excess and shall bear a rateable proportion of the loss

accordingly. Each item of the Policy (if more than one) to which this Memorandum applies shall be

separately subject to the foregoing provision.

4. This Memorandum shall be without force or effect if:-

a) The Insured fails to intimate to the Company within six (6) months from the date of destruction or

damage, or such further times as the Company may in writing allow, his intention to replace or reinstate

the property destroyed or damaged.

b) The Insured is 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 Policy if this memorandum

had not been incorporated therein shall be made if at the time of any destruction or damage to any

property insured hereunder such property shall be covered by any other insurance effected by or on

behalf of the Insured which is not upon the identical basis of reinstatement set forth therein.

REINSTATEMENT VALUE (STRATA TITLED PROPERTY) CLAUSE

Notwithstanding anything to the contrary contained in Condition 17 of the Policy, it is hereby declared and

agreed that in the event of the property insured under (items nos....) of the within Policy being destroyed or

damaged, the basis upon which the amountpayable under (each of the said items of) the Policy 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 insured property when new, subject to the following Special

Provisions and subject also to the terms and conditions of the Policy 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 the requirements of the Insured subject to the liability of the Company not being thereby

increase) 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 the Company

may (during the said 12 months) in writing allow otherwise no payment beyond the amount which would

have been payable under the Policy if this clause had not been incorporated therein shall be made.

2) Until expenditure has been incurred by the Insured in replacing or reinstating the property destroyed or

damaged the Company shall not be liable for any payment in excess of the amount which would have

been payable under the Policy if this clause had not been incorporated therein.

3) If the Sum Insured at the breaking out of any fire or at the commencement of any destruction of or damage

to the property by any other peril hereby insured against be less than 85% of the sum representing the

cost at the time of replacement or reinstatement which would have been incurred in replacement or

reinstatement if the whole of the property insured had been destroyed then the Insured shall be considered

being his own insurer for the difference between the sum insured and the sum representing the full cost

at the time of replacement or reinstatement which would have been incurred in replacement or

reinstatement if the whole of the property insured had been destroyed and shall bear a rateable proportion

of the loss accordingly. Every item, if more than one of the Policy shall be separately subject to this

Special Provision.

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PAGE 26 OF 50

4) This clause shall be without force or effect if :-

a) The Insured fails to intimate to the Company within six (6) months from the date of destruction or

damage, or such further time as the Company may in writing allow, his intention to replace or reinstate

the property destroyed or damaged.

b) The Insured is unable or unwilling to replace or reinstate the property destroyed or damaged on the

same or upon another site.

5) No payment beyond the amount which would have been payable under the Policy if this clause had not

been incorporated therein shall be made if at the time of any destruction or damage to any property

insured hereunder such property shall be covered by any other insurance effected by or on behalf of the

Insured which is not upon the identical basis of reinstatement set forth therein.

6) In the event that the Company is liable to make any payment (other than payment representing the cost

of replacing or reinstating the property destroyed or damaged) under the provisos of this clause the

Company shall only make such payment in accordance with the Strata Titles Act, 1985 and the Strata

Titles (Federal Territory of Kuala Lumpur) Rules, 1988 and/or its subsequent amendments.

REINSTATEMENT - DAY ONE BASIS (NON-ADJUSTABLE)

Memorandum applicable to Item(s) No(s) (Buildings and/or Machinery)

1. Notwithstanding anything to the contrary contained in Condition 17 of the Policy, it is hereby declared and

agreed that the Insured having stated in writing the Declared Value incorporated in such item to which

this Memorandum applies, the Premium has been calculated accordingly.

"Declared Value" shall mean the Insured's assessment of the cost of replacement or reinstatement of the

property insured arrived at in accordance with the opening paragraph of the Reinstatement Value

Memorandum, at the level of costs applying at the inception of the period of insurance (ignoring inflationary

factors which may operate subsequently) together with, insofar as the insurance by the item provides,

due allowance for :-

(i) the additional cost of reinstatement to comply with Public Authority requirements,

(ii) professional fees,

(iii) debris removal costs.

2. At the inception of each period of insurance the Insured shall notify the Insurers of the Declared Value of

the property insured by each of the said item(s). In the absence of such declaration the last amount

Declared by the Insured shall be taken as the Declared Value for the ensuing period of insurance..

3. Notwithstanding any general indication or endorsement to the contrary the following wording applies to

Special Provision 3 of the Reinstatement Value Clause:-

3. If at the time of loss the Declared Value of the property covered by such item be less than the cost

of replacement or reinstatement (as defined in paragraph 1 of the Day One Basis Memorandum) at

the inception of the period of insurance then the Insurer's liability for any loss hereby shall be limited

to that proportion hereof which the Declared Value bears to the cost of replacement or reinstatement

(as defined in paragraph 1 of the Day One Basis Memorandum). Each item of the policy (if more

than one) to which this Memorandum applies shall be separately subject to the foregoing provision.

and the following new Special Provision 6 is incorporated into the Reinstatement Value Clause

6. Where by reason of any of the above special provisions no payment is to be made beyond the

amount which would have been payable under the policy if this Memorandum had not been

incorporated therein the rights and liabilities of the Insurers and the Insured in respect of the

destruction or damage shall be subject to the terms and conditions of the Policy including any

Conditions of Average therein, as if this memorandum had not been incorporated therein except

that the sums insured shall be limited to 120% of the Declared Value.

FFFEFI001-Q-0518

PAGE 27 OF 50

REINSTATEMENT - DAY ONE BASIS (ADJUSTABLE)

Memorandum applicable to Item(s) No(s) ..........(Buildings and/or Machinery)

1. The Insured having stated in writing the Declared Value incorporated in each item to which this Memorandum

applies, the premium has been calculated accordingly.

"Declared Value" shall mean the Insured's assessment of the cost of replacement or reinstatement of the

property insured arrived at in accordance with the opening paragraph of the Reinstatement Value Clause,

at the level of costs applying at the inception of the period of insurance (ignoring inflationary factors which

may operate subsequently) together with, insofar as the insurance by the item provides, due allowance

for:-

(i) the additional cost of reinstatement to comply with Public Authority requirements,

(ii) professional fees,

(iii) debris removal costs.

2. At the inception of each period of insurance the Insured shall notify the Insurers of the Declared Value of

the property insured by each of the said item(s). In the absence of such declaration the last amount

declared by the Insured shall be taken as the Declared Value for the ensuing period of insurance.

3. The premium thereon is provisional. On expiry of each period of insurance the premium shall be adjusted

by 50% of the difference between:-

(i) the provisional premium at the commencement of the period and

(ii) the premium calculated at the terms which have applied during the period under adjustment based

on the Declared Value for the subsequent period of insurance.

4. For purposes of paragraph 3 of this Memorandum only:-

(i) if the policy (or any item thereof) is cancelled or not renewed the Insured shall provide the Declared

Value of the property insured by each of the said item(s) calculated in accordance with paragraph 1

of this Memorandum but at the level of costs applying at the date of cancellation or non-renewal,

(ii) where property has not been reinstated following loss the Insured shall provide the Declared Value

as though the property had not been damaged or destroyed,

(iii) where a declaration of the Declared Value is not submitted to the Insurers an additional premium of

10% of the provisional premium shall become payable.

5. Notwithstanding any general indication or endorsement to the contrary the following wording applies to

Special Provision 3 of the Reinstatement Value Clause:-

3. If at the time of loss the Declared Value of the property covered by such item be less than the cost

of replacement or reinstatement (as defined in paragraph 1 of the Day One Basis Memorandum) at

the inception of the period of insurance then the Insurer's liability for any loss hereby shall be limited

to the proportion hereof which the Declared Value bears to the cost of replacement or reinstatement

(as defined in paragraph 1 of the Day One Basis Memorandum). Each item of the policy (if more

than one) to which this Memorandum applies shall be separately subject to the foregoing provision.

and the following new Special Provision 6 is incorporated into the Reinstatement Value Clause

6. Where by reason of any of the above special provisions no payment is to be made beyond the

amount which would have been payable under the policy if this Memorandum had not been incorporated

therein the rights and liabilities of the Insurers and the Insured in respect of the destruction or

damage shall be subject to the terms and conditions of the Policy including any Conditions of Average

therein, as if this Memorandum had not been incorporated therein except that the sums insured

shall be limited to 120% of the Declared Value.

REINSTATEMENT IN COMPLIANCE WITH THE REQUIREMENT OF PUBLIC AUTHORITIES

Notwithstanding anything to the contrary contained in Condition 17 of the Policy, it is hereby declared and

agreed that the insurance by (Item No.............of) this Policy extends to include such additional cost of

reinstatement of the destroyed or damaged property thereby insured as may be incurred solely by reason of

the necessity to comply with Building or other Regulations under or framed in pursuance of any Government

Act or Bye-Laws of any Municipal or Local Authority provided that:-

FFFEFI001-Q-0518

PAGE 28 OF 50

1) The amount recoverable under this Extension shall not include:-

a) the cost incurred in complying with any of the aforesaid Regulations or Bye-Laws :-

i) in respect of destruction or damage occurring prior to the granting of this extension,

ii) in respect of destruction or damage not insured by the Policy,

iii) under which notice has been served upon the Insured prior to the happening of the destruction

or damage.

iv) in respect of undamaged property or undamaged portions of property.

b) the additional cost that would have been required to make good the property damaged or destroyed

to a condition equal to its condition when new had the necessity to comply with any of the aforesaid

Regulations or Bye-Laws not arisen;

c) the amount of any rate, tax, duty, development or other charge or assessment arising out of capital

appreciation which may be payable in respect of the property or by the owner thereof by reason of

compliance with any of the aforesaid Regulations or Bye-Laws.

2) The work of reinstatement must be commenced and carried out with reasonable despatch and in any

case must be completed within twelve (12) months after the destruction or within such further time as the

Company may (during the said 12 months) in writing allow and may be carried out wholly or partially upon

another site (if the aforesaid Regulations or Bye-Laws so necessitate) subject to the liability of the

Company under this extension not being thereby increased.

3) If the liability of the Company under (any item of) the Policy apart from this extension shall be reduced by

the application of any of the terms and conditions of the Policy then the liability of the Company under

this extension (in respect of any such item) shall be reduced in like proportion.

4) The total amount recoverable under any item of the Policy shall not exceed the sum insured thereby.

5) All the conditions of the Policy except insofar as they may be hereby expressly varied shall apply as if

they had been incorporated herein.

REMOVAL OF DEBRIS (WITH SEPARATE SUM INSURED)

The insurance by this item is in respect of costs and expenses necessarily incurred by the Insured with the

consent of the Company in the :-

(a) removal of debris

(b) dismantling and/or demolishing

of the portion or portions of the property insured by this policy destroyed or damaged by fire or by any other

peril hereby insured against. (Items (b) and (c) above are deemed to be deleted when neither Buildings nor

machinery are insured).

The Company 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 insured by this policy.

REMOVAL OF DEBRIS (WITHOUT SEPARATE SUM INSURED)

The insurance on Item(s) No(s) ........ hereby insured includes costs and expenses necessarily incurred by the

Insured with the consent of the Company in the :-

(a) removal of debris

(b) dismantling and/or demolishing

of the portion or portions of the property insured by the said Item(s) above of this policy destroyed or damaged

by fire or by any other peril hereby insured against. (Items (b) and (c) above are deemed to be deleted when

neither Buildings nor machinery are insured).

The amount payable for such costs and expenses shall not exceed 10% of the Sum Insured of each Item or

Ringgit Malaysia Two Million (RM2,000,000) in aggregate any one loss, whichever is lower.

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PAGE 29 OF 50

The Company 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 insured by this policy.

Provided always the Company's maximum liability shall not exceed the sum stated in the Schedule for which

the Item(s) is/are insured.

RENT

(a) Rent (applicable to owner non-occupier of the premises)

On..... months rent insured. Sum Insured : RM ........

This insurance on Rent applies only if (any of) the said buildings(s) or any part thereof is unfit for occupation

in consequence of fire or any other peril hereby insured against and the amount payable shall not exceed

such proportion of the sum insured on Rent as the period necessary for reinstatement or repairs bears

to the total number of months of Rent insured.

(b) Rent (applicable to owner-occupier of the premises)

On..... months expenses insured. Sum Insured : RM .......

This insurance on Rent applies only if (any of) the said building(s) or any part thereof is unfit for occupation

in consequence of fire or any other peril hereby insured against and the amount payable shall be the

reasonable additional expenses necessarily incurred by the insured in renting an alternative premise

elsewhere. Provided that the total amount payable shall not exceed such proportion of the expenses

insured as the period necessary for reinstatement or repairs bears to the total number of months

expenses insured.

On..... months rent insured. Sum Insured : RM .......

On..... months expenses insured. Sum Insured : RM .......

This insurance on Rent applies only if any of the said building(s) or any part thereof is unfit for occupation

in consequence of fire or any other peril hereby insured against but only in respect of the period necessary

for reinstatement or repair and the amount payable shall not exceed.

(i) the amount of rent that the insured is legally liable for; and/or

(ii) the reasonable additional expenses necessarily incurred by the insured in renting an alternative

premise elsewhere.

Provided the total amount recoverable under this extension shall not exceed the Sum Insured stated.

SELF-INSURANCE CLAUSE

It is hereby declared and agreed that the Insured agrees to self-insure and that the sum(s) insured nominated

under [item(s) no(s)......of] this Policy represent(s) only ....% of the actual Market Value (or reinstatement value

in the event that this Policy is onreinstatement value basis) of the property insured herein.

In consequence of the foregoing, the Insured agrees to be his own insurer for ....% and undertakes to bear

that rateable proportion of :-

(a) each and every loss or damage (including any amounts in respect of fees charges costs and expenses)

payable under this Policy; and

(b) any expenditure payable in the exercise of Condition 18 of this Policy.

It is further declared and agreed that in the event the sum(s) insured under [item(s) no(s)..... of] this Policy is

less than ....% of the actual value of the insured property at the time of loss, Condition 20 of this Policy (Average

Clause) shall apply accordingly.

FFFEFI001-Q-0518

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SMOKE DAMAGE ENDORSEMENT

Notwithstanding anything contained in this policy to the contrary, it is hereby declared and agreed that in

consideration of the payment of an additional premium, the insurance under item no: ........................... of this

Policy shall extend to include:-

Destruction of or damage to the property insured (by fire or otherwise) directly caused by smoke due to a

sudden, unusual and faulty operation of any heating or cooking unit, only when such unit is connected to a

chimney by exhaust pipe or vent pipe, and while in or on the described premises but not smoke from fire-places

or industrial apparatus.

In respect of loss or damage caused by the peril hereby insured against, the Company shall not be liable for

the first RM50,000 of each and every loss as ascertained after the application of any condition of average.

Provided always that all the conditions of the Policy (except in so far as they may be hereby expressly varied)

shall apply as if they had been incorporated herein and for the purpose hereof any destruction or damage as

aforesaid shall be deemed to be destruction or damage by fire.

SPECIAL CONDITIONS FOR DECLARATION POLICIES

1) In consideration of the premium by this Policy being provisional in that it is calculated on 100% of the sum

insured hereby and is subject to adjustment on expiry of each period of insurance:-

The Insured agrees to declare to the Company in writing the value of his stocks, less any amount insured

by Policies other than Declaration Policies, on the following basis namely .................(insert the appropriate

wording in accordance with Rule 1.25.5 of Section 1) and to make such declaration within thirty days of

the ............................(insert the appropriate day or date) of each calendar month, such declaration to be

signed by the Insured or by a responsible person authorised to sign on his behalf. If other Policies on a

declaration basis cover the stock hereby insured the declarations shall be made so as to apportion to

each Policy a share of the value of the stocks insured under such Declaration Policies, pro-rata to the

respective amounts named in the Policies.

In the event of a declaration not being made within the thirty days mentioned above then the Insured

shall be deemed to have declared the sum insured hereby as the value at risk.

On the expiry of each period of insurance the premium shall be calculated at the rate applicable on the

average sum insured, namely, the total of the values declared or deemed to have been declared divided

by the number of declarations due to have been made. If the resultant premium be greater than the

provisional premium the Insured shall pay the difference; if it be less the difference shall be repaid to the

Insured but such repayment shall not exceed 50% of the provisional premium.

2) The basis of value for declarations shall be the market value and any loss hereunder shall be settled on

the basis of the market value immediately anterior to the loss.

3) If at the time of any loss, there be any other subsisting insurance or insurances on other than a declaration

basis, whether effected by the Insured or by any other person or persons, covering the stocks hereby

insured, this Policy shall apply only to the excess of the value of such stocks at the time of the loss over

the sum insured by such insurance or insurances, and this Company shall not be liable to pay or contribute

more than that proportion of such loss which such excess (or, if there be other declaration insurances

covering the same stocks, a rateable proportion of such excess), but not exceeding the sum insured

hereby, bears to the total value of the stocks.

4) If after the occurrence of a loss it is found that the amount of the last declaration previous to the loss is

less than the amount that ought to have been declared, then the amount which would have been

recoverable by the Insured shall be reduced in such proportion as the amount of the said last declaration

bears to the amount that ought to have been declared.

5) In the event of a loss occurring the Insured undertakes to pay extra premium on the amount of any loss

pro rata from the date of such loss to the expiry of the period of insurance, the premium being calculated

at the rate applicable to the stocks destroyed and such extra premium shall not be taken into account in,

and shall be distinct from, the final adjustment of premium.

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6) In the event of this Policy being cancelled by the Insured during its currency (whether stocks exists or not)

the premium to be retained by the Company shall be the appropriate short period premium calculated on

the average amount insured up to the date of cancelment, or 50% of the provisional premium whichever

is the greater; but if the Policy is cancelled by the Insured after a loss has occurred the premium to be

retained by the Company shall be the pro-rata proportion of the premium calculated on the average

amount insured up to the cancelment plus the pro-rata proportion of the premium from the date of loss

to the expiry of the period of insurance on the amount of the loss paid, or 50% of the provisional premium

whichever is the greater.

7) It is warranted that every other Policy on a declaration basis covering the stocks insured hereby shall be

indentical in wording with this Policy.

8) This insurance is subject in all respects to the printed conditions of the Policy except in so far as they

may be varied by these Special Conditions.

SPRINKLER LEAKAGE ENDORSEMENT

In consideration of the payment of an additional premium, it is hereby declared and agreed that the insurance

under this policy extends to include loss of or damage to the property insured directly caused by water or

other fire extinguishing agent accidentally discharged or leaking from the automatic sprinkler installation and/or

drencher and/or fire suppression or extinguishing installation or apparatus.

Provided always that otherwise the insurance under this endorsement and the Policy shall be subject to all

the terms, limitations, stipulations, exclusions, provisions and exceptions printed on, expressed in, endorsed

upon or attached to the Policy and that without in any way limiting the generality of the foregoing, the liability

of the Company shall in no case under this endorsement exceed in respect of each item the sum expressed

in the Schedule or in the whole the total sum insured.

This insurance does not cover loss or damage occasioned by or through or in consequence of:-

a) explosion, the blowing up of buildings or blasting

b) the order of any authority

c) heat caused by fire

d) repairs or alterations to the buildings or premises

e) the automatic sprinkler installation being either repaired, removed or extended.

No liability shall attach if the building insured or containing the insured property becomes unoccupied and so

remains for a period of more than thirty (30) days unless the Insured obtains the sanction of the Company

signified by endorsement upon the Policy.

SPECIAL CONDITIONS

1) The Insured shall at all times during the currency of this Policy take all reasonable steps to maintain in

proper working order the installation of Automatic Sprinklers, including the Automatic Alarm signal.

2) The Company shall not be responsible for loss or damage which may occur after notice has been given

to the Insured by the Company that Sprinkler Installations is/are liable to accident by reason of defective

construction or condition nor if the Insured is himself aware of defect in construction or condition.

TEMPORARY REMOVAL CLAUSE

Contents of Private Dwellings

The property insured under (item(s) .... of) this Policy is covered whilst temporarily removed including whilst

in transit but remaining in Malaysia, the Republic of Singapore or Brunei Darussalam for an amount not

exceeding 15% of the sum insured under (each item of) this policy.

The amount recoverable under this extension in respect of (each item of) the policy shall not exceed the

amount which would have been recoverable had the loss occurred in the premises from which the property

was temporarily removed.

This extension does not apply to property in so far as it is otherwise insured nor to property removed for sale

or exhibition or to a furniture depository.

N.B. The words in brackets may be omitted where appropriate.

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TEMPORARY REMOVAL CLAUSE

Other Property Excluding Stock-in-Trade and Merchandise

The property insured under item(s) .............. of this Policy is covered (limited to 10% of the sum insured) whilst

temporarily removed including whilst in transit for cleaning, renovation, modification, repair or other similar

purpose, elsewhere on the same or to any other premises and in transit thereto and therefrom by road, rail,

or inland waterway, all in Malaysia, the Republic of Singapore or Brunei Darussalam.

The amount recoverable under this extension in respect of the property so removed shall not exceed the

amount which would have been recoverable had the loss occurred in that part of the premises from which the

property is temporarily removed.

This extension does not apply to property if and so far as it is otherwise insured, nor does it apply to items

covering stock and merchandise of every description, nor as regards losses occurring elsewhere than at the

premises from which the property is temporarily removed to:-

i) Motor Vehicles and Motor Chassis.

ii) Property (other than machinery and plant) held by the Insured in trust.

TEMPORARY STORAGE CLAUSE

The property (excluding buildings) insured under this Policy is covered whilst temporarily stored anywhere in

Malaysia, Brunei Darussalam and Singapore PROVIDED that:-

a) the period of temporary storage shall not exceed sixty (60) days.

b) the liability of the Company is limited to 10% of the total sum insured or RM500,000 whichever is the lower

for property covered under this clause.

c) the Company shall not be liable for any loss or damage to the property whilst in transit (including the

processes of loading and unloading incidental to such transit).

d) this insurance does not apply to property in so far as it is otherwise insured nor does it apply to motor

vehicles and motor chassis licensed for road use or being used on a road as defined in the Road

Transport Act 1987 (including accessories thereon).

TENANTS CLAUSE (AS TO INTEREST OF THE OWNER)

It is hereby agreed that this insurance as to the interest of the Insured where the property insured is used or

occupied by a tenant of the Insured, shall not be invalidated by any change of occupancy or increase of risk

taking place in the property insured without the knowledge of the Insured provided that the Insured shall

immediately on the same coming to his knowledge, give notice thereof to the Company and pay the additional

premium (if any) which may be required by the Company from the date of such increase of risk.

Subject otherwise to the terms and conditions of the Policy.

VEHICLE LOAD CLAUSE

In the event of any of the Insured's vehicles being left loaded overnight whilst in or on the premises described

in the specification hereto the Company will indemnify the Insured in respect of such load in the event of loss

or damage by any of the perils insured against by this Policy.

WAIVER OF SUBROGATION RIGHTS OF INSURERS

The waiver of subrogation rights of Insurers is confined and/or restricted to specific named legal entities only.

In consideration of the payment of an additional premium, the Company agrees to waive any rights and remidies

or relief or indemnity to which it may become entitled by subrogation against the following entity(ies):-

Name of Entities

As declared in policy schedule

However, the Company’s entitlement to enforce any rights and remidies or to obtain relief or indemnity from

any other party(ies) by way of subrogation shall remain unaffected.

VOLUNTARY DEDUCTIBLES

This policy does not cover the amounts of the deductibles stated in the Schedule in respect of each and every

loss or series of losses arising out of any one event as ascertained after the application of all other terms and

conditions of the policy including any other deductibles and condition of average.

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The duration and extent of any loss occurrence arising out of any one event so defined shall be limited to:-

72 consecutive hours as regards cyclone, hurricane, typhoon and/or windstorm.

72 consecutive hours as regards earthquake, and/or flood (including overflow if the sea).

72 consecutive hours and within the limits of one City or Town as regards civil commotions, riot and strike

and/or malicious damage.

168 consecutive hours for any other catastrophe of whatsoever nature.

Warranted that during the currency of the Policy the insured shall not effect insurance in respect of the

amounts of the deductibles stated in the schedule.

MEMORANDA 3

SPECIAL / EXTRANEOUS PERILS CLAUSES AND ENDORSEMENTS

This Policy extends to include the following clauses / endorsements only when specified in the schedule

and in consideration of additional premium having paid or agreed to pay by the Insured.

AIRCRAFT DAMAGE

In consideration of an additional premium, the Company hereby agree and declare that the insurance under the

Policy shall, subject to the Special Conditions hereinafter contained, extend to include loss or damage (by fire or

otherwise) to the property insured directly caused by aircraft and other aerial devices and/or articles dropped

therefrom.

Provided always that all the conditions of the Policy shall apply as if they had been incorporated herein and for the

purpose hereof any loss or damage as aforesaid shall be deemed to be loss or damage by fire.

SPECIAL CONDITIONS

(1) The liability of the Company shall in no case under this Endorsement and the Policy exceed the sum insured

by each item of the Policy.

(2) This insurance does not cover any loss or damage caused by any aircraft for which permission to land has

been extended by the Insured.

Subject otherwise to the terms and conditions of the policy.

Note: Members are permitted to delete Special Condition (2) of the Aircraft Damage Endorsement subject to

a minimum additional premium of 0.003% per annum.

The above provision for deletion is applicable only to insured buildings with helipads located either on

roof-top or ground level.

BUSH/LALANG FIRE

In consideration of an additional premium, the Company hereby agree and declare that notwithstanding anything

to the contrary contained in Condition 8(i) of the Policy, the insurance is extended under Item No............ to cover

loss or damage caused by bush/lalang fire (provided that during the currency of this Policy every reasonable effort

shall be made to keep the Insured's ground free from lalang and undergrowth).

BURSTING OR OVERFLOWING OF WATER TANKS APPARATUS OR PIPES

In consideration of an additional premium, the Company hereby agree and declare that the insurance under this

Policy shall extend to include loss or damage to the property insured caused by the bursting or overflowing of water

tanks, apparatus or pipes installed in or on the buildings insured or containing the property insured excluding:-

(a) loss or damage caused whilst the premises are untenanted.

(b) loss or damage by water discharged or leaking from an installation of automatic sprinklers.

of average, or the Company's rateable proportion of that amount.

** Where the sum insured is less than RM50,000 the amount of this excess may be reduced to 1% of the

sum insured subject to a minimum of RM100.00.

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Provided always that all the conditions of the Policy (except in so far as they may be hereby expressly varied)

shall apply as if they had been incorporated herein and for the purpose hereof any loss or damage as aforesaid

shall be deemed to be loss or damage by fire.

SPECIAL CONDITIONS

1. The liability of the Company shall in no case under this endorsement exceed the sum insured by each item

of the policy.

2. This insurance does not cover loss of earnings, loss by delay, loss of market or other consequential or indirect

loss or damage of any kind or description whatsoever except loss of rent when such loss is included in the

cover under the policy.

3. The Insured shall use all reasonable diligence and care to keep the premises in a proper state of repair and

if any defect therein be discovered shall cause such defect to be made good as soon as possible and shall in

the meantime cause such additional precautions to be taken for the prevention of loss or damage as the

circumstances may require and the Company shall not be liable for any loss or damage caused by a defect

which the Insured has failed to remedy after having received notice of such defect either from the Company

or any person or public body.

Subject otherwise to the terms and conditions of the Policy.

Note: It is not permissible to waive or reduce the excess.

EARTHQUAKE AND VOLCANIC ERUPTION

In consideration of an additional premium, the Company agrees that notwithstanding anything stated to the

contrary in Condition No. 6 of the Policy, this insurance extends to cover loss or damage directly caused by fire or

otherwise occasioned by or through or in consequence of earthquake and volcanic eruption.

Provided always that all the Conditions of this Policy shall apply (except in so far as they may be hereby expressly

varied) and that any reference therein to loss or damage by fire shall be deemed to apply also to loss or damage

directly caused by any of the perils which this insurance extends to include by virtue of this endorsement.

Subject otherwise to the terms and conditions of the Policy.

ELECTRICAL INSTALLATIONS CLAUSE (B)

Loss or damage by fire to the electrical appliances and installation insured by (Item(s) .............of) this Policy

arising from or occasioned by over-running, excessive pressure, short-circuiting, arcing, self-heating or leakage of

electricity, from whatever cause (lightning included) is covered subject to the terms and conditions of this Policy,

but it is expressly understood that no liability exists under this Policy for loss or damage to any electrical machine,

apparatus, fixture or fitting, or to any portion of the electrical installation, unless caused by fire or lightning.

Subject otherwise to the terms and conditions of the Policy.

EXPLOSION

In consideration of an additional premium, the Company hereby agree and declare that the insurance under

(Item(s) .................of) this Policy shall, subject to the Special Conditions hereinafter contained, extend to include:-

Loss of or damage to the property insured by fire or otherwise directly caused by explosion, but excluding loss of

or damage to boilers, economizers, or other vessels, machinery or apparatus in which pressure is used or their

contents resulting from their explosion.

Provided always that all the conditions of the Policy (except in so far as Condition No: 8 (h) is hereby expressly

varied) shall apply as if they had been incorporated herein and for the purpose hereof any loss or damage by

explosion as aforesaid shall be deemed to be loss or damage by fire within the meaning of this Policy.

SPECIAL CONDITIONS

1. The Company shall not be liable, under this extension, for loss or damage occasioned by or through or in

consequence, directly or indirectly, of any acts of terrorism.

For the purpose of this Condition, an act of terrorism means an act, including but not limited to the use of force

or violence and/or threat thereof, of any person or group(s) of persons, whether acting alone or on behalf of or

in connection with any organization(s) or government(s), 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.

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In any action, suit or other proceeding, where the Company alleges that by reason of the provisions of this

Condition any loss or damage is not covered by this insurance, the burden of proving that such a loss or

damage is covered shall be upon the Insured.

2. If there shall be any other fire insurance on the property insured under this Policy, the Company shall be liable

only pro rata with such other fire insurance for any loss or damage by explosion whether or not such other fire

insurance be extended to cover loss or damage by explosion.

3. The Company shall not be liable under this extension for loss or damage which at the time of the happening

of such loss or damage is insured by or would, but for the existence of this extension, be insured by any other

existing Policy or Policies except in respect of any excess beyond the amount which would have been payable

under such other Policy or Policies had this insurance not been effected.

Subject otherwise to the terms and conditions of the Policy.

FLOOD

In consideration of an additional premium, the Company agrees that notwithstanding anything stated to the

contrary in Condition No. 6 of the Policy, this insurance extends to cover loss or damage directly caused by fire or

otherwise occasioned by or through or in consequence of Flood (including overflow of the sea) subject to the

following Excess Clause and Special Conditions attached hereto.

Note: Flood, for the purpose of this extension, shall mean 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 insured or containing the property insured,

but excluding loss or damage caused by subsidence or landslip.

Provided always that all the Conditions of this Policy shall apply (except insofar as they may be hereby expressly

varied) and that any reference therein to loss or damage by fire shall be deemed to apply also to loss or damage

directly caused by any of the perils which this insurance extends to include by virtue of this endorsement.

EXCESS CLAUSE

It is understood and agreed that as regards loss or damage to any property hereby insured directly caused by the

peril to which this Clause is hereinbefore stated to apply, the Company's liability shall be limited to its rateable

proportion of the amount by which such loss or damage exceeds either:-

(a) 1% of the total sums insured against such peril on said property by Policies in the name of the Insured, or

(b) the first RM2,500.00 of each and every loss.

whichever shall be the less, as ascertained after the application of any condition of average.

It is further agreed that this Clause shall apply separately to:-

(i) each property, for which purpose all insured properties at the same address will be regarded as one property,

(ii) each incident giving rise to such loss or damage and that for the purposes hereof an incident shall not be

considered to have terminated until there have been seven (7) consecutive days' freedom from the peril

concerned and that only thereafter shall the Clause apply afresh.

SPECIAL CONDITIONS

1. This endorsement does not extend the insurance under this Policy to cover:-

(a) Consequential loss of any kind.

(b) Loss or damage caused by hail whether driven by wind or not.

volcanic eruption, provided that these perils are insured against by this Policy.

(d) Loss or damage caused by explosion except as provided in Condition 8(h) of the Policy.

(e) Loss by reason of any ordinance or law regulating the construction or repair of buildings.

2. The Company shall not be liable under this extension for loss or damage which at the time of the happening

of such loss or damage is insured by or would, but for the existence of this extension, be insured by any other

existing Policy or Policies except in respect of any excess beyond the amount which would have been payable

under such other Policy or Policies had this Insurance not been effected.

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3. Unless specifically and separately insured this endorsement does not cover Metal smoke stacks, awnings,

blinds, signs or other outdoor fixtures or fittings of any description.

Subject otherwise to the terms and conditions of the Policy.

IMPACT DAMAGE EXCLUDING INSURED'S OWN VEHICLES

In consideration of an additional premium, the Company hereby agree and declare that the insurance under this

Policy shall extend to include loss or damage to the property described in the Schedule and/or to walls, gates and

fences around and pertaining thereto directly resulting from impact by any road vehicles, animals not belonging to

or under the control of the Insured or any member of this family, or any person in and upon the Insured's service,

provided that the first RM50.00 of each and every claims under this endorsement shall be borne by the Insured,

as ascertained after the application of any condition of average.

Provided always that all the conditions of the Policy shall apply as if they had been incorporated herein and for the

purpose hereof any loss or damage as aforesaid shall be deemed to be loss or damage by fire.

Subject otherwise to the terms and conditions of the Policy.

IMPACT DAMAGE INCLUDING INSURED'S OWN VEHICLES

In consideration of an additional premium, the Company hereby agree and declare that the insurance under this

Policy shall extend to include loss or damage to the property described in the Schedule and/or to walls, gates and

fences around and pertaining thereto directly resulting from impact by any road vehicles, animals including any

road vehicles, animals belonging to or under the control of the Insured, or any member of his family, or any person

in and upon the Insured's service, provided that the first RM250.00 of each and every claim under this endorsement

shall be borne by the Insured, as ascertained after the application of any condition of average.

Provided always that all the conditions of the Policy shall apply as if they had been incorporated herein and for the

purpose hereof any loss or damage as aforesaid shall be deemed to be loss or damage by fire.

Subject otherwise to the terms and conditions of the policy.

Note: Underwriters may at their discretion, insert the words ".....forklift, other mechanically or electrically propelled

vehicles (other than vehicles held as stock), railway locomotives and/or rolling stocks....." immediately after

the words ".....road vehicle....."

RIOT STRIKE AND MALICIOUS DAMAGE

In consideration of an additional premium, the Company hereby agree and declare that the insurance under* this

Policy shall extend to cover Riot and Strike Damage which for the purpose of this Endorsement shall mean

(subject to the Special Conditions hereinafter contained):-

Loss of or damage to property insured** directly caused by:-

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 being an occurrence mentioned in Condition 6 of the Special

Conditions hereof.

2. The action of any lawfully constituted authority in suppressing or attempting to suppress any such disturbance

or in minimizing the consequences of any such disturbance.

3. The willful act of any striker or locked-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

minimizing the consequences of any such act.

It is hereby declared further that notwithstanding anything in the within written Policy contained to the contrary, the

insurance under this Policy shall extend to cover Malicious Damage which for the purpose of this extension shall

mean:-

Loss of or damage to the property insured directly caused by 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 Special Condition 6 of the Endorsement but the Company shall not

be liable under this extension 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 thereat or caused by any person taking

part therein.

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Note: If certain items only of the Policy are to be insured against Riot and Strike, insert the words "items.........of"

and "under the items hereinbefore referred to but none other" at * and ** respectively.

SPECIAL CONDITIONS

For the purposes of this Endorsement but not otherwise there shall be substituted for the respectively numbered

Conditions of the Policy the following:-

Condition 5

This insurance does not cover:-

a) Loss of earnings, loss by delay, loss of market or other consequential or indirect loss or damage of any kind

or description whatsoever.

b) Loss or damage resulting from total or partial cessation of work or the retarding or interruption or cessation of

any process or operation.

c) Loss or damage occasioned by permanent or temporary dispossession resulting from confiscation, commandeering

or requisition by any lawfully constituted authority.

d) Loss or damage occasioned by permanent or temporary dispossession of any building resulting from the

unlawful occupation by any person of such building.

PROVIDED nevertheless that the Company is not relieved under (c) or (d) above of any liability to the Insured in

respect of physical damage to the property insured occurring before dispossession or during temporary dispossession.

Condition 6

This insurance does not cover any 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 rising, military rising, 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

threat thereof, of any person or group(s) of persons, whether acting alone or on behalf of or in connection with any

organization(s) or government(s), 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 proceeding, where the Company alleges that by reason of the provisions of this

Condition any loss or damage is not covered by this insurance, the burden of proving that such loss or damage

is covered shall be upon the Insured.

Condition 8

Unless otherwise expressly stated in the Policy this insurance does not cover:-

a) Goods held in trust or on commission.

b) Bullion or unset precious stones.

c) Any curiosity or work of art for an amount exceeding RM500.00.

d) Manuscripts, plans, drawings or designs, patterns, models or moulds.

e) Securities, obligations, or documents of any kind, stamps, coined or paper money, cheques, books or accounts

or other business books, or computer systems records.

f) Explosives.

Condition 11

This insurance may at any time be terminated by the Company on notice to that effect being given to the Insured,

in which case the Company shall be liable to repay a rateable proportion of the premium for the unexpired term

from the date of cancelment. If the insurance be terminated at the request of the Insured, the Company shall not

be liable to repay the premium or any part of it except in so far as the insurance applies to stocks in respect of

which the Company shall retain a premium calculated according to its customary short period scale for the time the

said insurance has been in force.

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Condition 20

If the property hereby insured 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 insured against by this Endorsement be collectively of greater value

than the sum insured thereon, then the Insured shall be considered as being his own insurer for the difference and

shall bear a rateable share of the amount of the loss accordingly. Every item, if more than one, of the Policy shall

be separately subject to this condition.

PROVIDED that it is hereby further expressly agreed and declared that:-

1) All the Conditions of this Policy shall apply in all respects to the insurance granted by this extension save in

so far as the same are expressly varied by the above Special Conditions and any reference to fire in the

Conditions of the Policy shall be deemed to include the perils hereby insured against

2) The Special Conditions herein shall apply only to the insurance granted by this extension and the Conditions

of the Policy shall apply in all respects to the insurance granted by the Policy as if this Endorsement had not

been made thereon.

SPONTANEOUS COMBUSTION (BY FIRE ONLY)

In consideration of an additional premium, the Company hereby agree and declare that the insurance under

(Item(s)..................of) the. Policy shall, subject to the Special Conditions hereinafter contained, extend to include

loss or damage to the property insured by fire only caused by its own spontaneous fermentation, heating or

combustion.

Provided always that all the conditions of the Policy shall apply as if they had been incorporated herein and for the

purpose hereof any loss or damage as aforesaid shall be deemed to be loss or damage by fire.

Note: The words "by fire only" may be deleted in respect of insurances on coal.

SPECIAL CONDITIONS

(1) The liability of the Company shall in no case under this endorsement and the Policy exceed the sum insured

by each item of the policy.

(2) This insurance does not cover loss of earnings, loss by delay, loss of market or other consequential or

indirect loss or damage of any kind or description whatsoever except loss of rent when such loss is included

in the cover under the Policy.

Subject otherwise to the terms and conditions of the Policy.

SPONTANEOUS COMBUSTION (FULL COVER)

In consideration of an additional premium, the Company hereby agree and declare that the insurance under

(item(s) ..................) of the Policy shall, subject to the Special Conditions hereinafter contained, extend to include

loss or damage to the property insured caused by its own spontaneous fermentation, heating or combustion.

Provided always that all the conditions of the policy shall apply as if they had been incorporated herein and for the

purpose hereof any loss or damage as aforesaid shall be deemed to be loss or damage by fire.

SPECIAL CONDITIONS

(1) The liability of the Company shall in no case under this endorsement and the Policy exceed the sum insured

by each item of the policy.

(2) This insurance does not cover loss of earnings, loss by delay, loss of market or other consequential or

indirect loss or damage of any kind or description whatsoever except loss of rent when such loss is included

in the cover under the policy.

Subject otherwise to the terms and conditions of the Policy.

STORM, TEMPEST

In consideration of an additional premium, the Company agrees that notwithstanding anything stated to the

contrary in Condition No. 6 of the Policy, this insurance extends to cover loss or damage directly caused by fire or

otherwise occasioned by or through or in consequence of Hurricane, Cyclone, Typhoon and Windstorm, subject to

the following Excess Clause and Special Conditions attached hereto. Provided always that all the Conditions of

this Policy shall apply (except insofar as they may be hereby expressly varied) and that any reference therein to

loss or damage directly caused by any of the perils which this insurance extends to include by virtue of this

endorsement.

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EXCESS CLAUSE

It is understood and agreed that as regards loss or damage to any property hereby insured directly caused by

any peril to which this Clause is hereinbefore stated to apply, the Company's liability shall be limited to its

rateable proportion of the amount by which such loss or damage exceeds either:-

(a) 1% of the total sums insured against such peril on said property by Policies in the name of the Insured, or

(b) RM200.00

Which ever shall be the less, as ascertained after the application of any condition of average.

It is further agreed that this Clause shall apply separately to:-

(i) each property, for which purpose all insured properties at the same address will be regarded as one property,

(ii) each incident giving rise to such loss or damage and that for the purposes hereof an incident shall not be

considered to have terminated until there have been seven (7) consecutive days' freedom from the peril

concerned and that only thereafter shall the Clause apply afresh.

SPECIAL CONDITIONS

1. The Company shall not be liable for any loss or damage caused by water or rain, whether driven by wind or

not unless the building insured or containing the property insured shall first sustain actual damage to the roof

or walls of same by the direct force of Hurricane, Cyclone, Typhoon and Windstorm and shall then be liable

only for such damage to the interior of the building or the insured property therein as may be caused by water

or rain entering the building through openings in the roof or walls made by the direct force of the said perils.

2. This endorsement does not extend the insurance under this Policy to cover:-