Newsroom | 10 Feb 2020
Berjaya Sompo Launches First of its kind Home Content Insurance with No Penalty for Underinsurance
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Kuala Lumpur, 10 February 2020 – Berjaya Sompo Insurance Berhad (“Berjaya Sompo”) today announced the launch of SOMPO Home Content, a new insurance product aimed at individuals who want to protect their belongings and valuables at home against any loss or damage due to fire, accidents or theft, from as low as RM89 per year.
When homebuyers purchase a property, they are required to either purchase home insurance directly from insurers or through the building management. However, these home insurance policies only cover for loss or damage to the building and not the contents in the house.
Mr Tan Sek Kee, Chief Executive Officer of Berjaya Sompo Insurance said “Most people don’t usually think of insuring their personal belongings because they are required to disclose the value of every item in their home which can be a hassle and time consuming to itemise. With the launch of SOMPO Home Content, Berjaya Sompo aims to address our customers’ pain points and at the same time making it easy to purchase or make a claim. In the first half of 2019, the industry saw an increase of 2.5 per cent to RM1.73 billion in the fire insurance segment[1]. This represents an opportunity for us to protect more homebuyers in the market by being a one-stop solution for holistic home protection.”
A Zero-penalty Plan that Suits Customers’ Needs
As part of its strategy to offer products that suit different needs, SOMPO Home Content has 3 different plans to choose from with a total Sum Insured of up to RM30,000 on household contents.
“This is a unique product where policyholders can claim the full amount based on the total sum insured even if the value of the home content is more than the sum insured. Many are unaware that short circuits, overloading of electricity from appliance usage, disposing of cigarette buds, smoking in bed and usage of candles are the main contributors behind the cause of the fire claims to rise. Aside from fire, natural disasters such as flood and lightning strike can cause major damage to electrical and non-electrical items in the house. Homebuyers who are interested can purchase SOMPO Home Content via our distribution channels such as agency, broking, direct and soon will be made available via bancassurance and digital,” said Mr Stuart Chua, Chief Distribution Officer of Berjaya Sompo Insurance.
Example:
*If underinsurance is applied, insurer pays RM30,000/RM60,000 – 1/2 ratio x (RM30,000) = RM15,000
**Based on the sum insured of RM30,000
There are three unique selling points of SOMPO Home Content:
When homebuyers purchase a property, they are required to either purchase home insurance directly from insurers or through the building management. However, these home insurance policies only cover for loss or damage to the building and not the contents in the house.
Mr Tan Sek Kee, Chief Executive Officer of Berjaya Sompo Insurance said “Most people don’t usually think of insuring their personal belongings because they are required to disclose the value of every item in their home which can be a hassle and time consuming to itemise. With the launch of SOMPO Home Content, Berjaya Sompo aims to address our customers’ pain points and at the same time making it easy to purchase or make a claim. In the first half of 2019, the industry saw an increase of 2.5 per cent to RM1.73 billion in the fire insurance segment[1]. This represents an opportunity for us to protect more homebuyers in the market by being a one-stop solution for holistic home protection.”
A Zero-penalty Plan that Suits Customers’ Needs
As part of its strategy to offer products that suit different needs, SOMPO Home Content has 3 different plans to choose from with a total Sum Insured of up to RM30,000 on household contents.
“This is a unique product where policyholders can claim the full amount based on the total sum insured even if the value of the home content is more than the sum insured. Many are unaware that short circuits, overloading of electricity from appliance usage, disposing of cigarette buds, smoking in bed and usage of candles are the main contributors behind the cause of the fire claims to rise. Aside from fire, natural disasters such as flood and lightning strike can cause major damage to electrical and non-electrical items in the house. Homebuyers who are interested can purchase SOMPO Home Content via our distribution channels such as agency, broking, direct and soon will be made available via bancassurance and digital,” said Mr Stuart Chua, Chief Distribution Officer of Berjaya Sompo Insurance.
Example:
*If underinsurance is applied, insurer pays RM30,000/RM60,000 – 1/2 ratio x (RM30,000) = RM15,000
**Based on the sum insured of RM30,000
There are three unique selling points of SOMPO Home Content:
- Policyholders do not need to disclose the value of every item of the home contents.
- Policyholders do not need to show proof of receipts for the home contents. However, a police report is required if it is a criminal act.
- Policyholders will not be penalised for underinsurance even if the home content is worth more than the sum insured.