Fire insurance is a regulated class of insurance in Malaysia. The basic fire policy cover loss and/or damage caused by fire, lightning and limited explosion. "Fire" shall mean actual ignition caused by accidental and fortuitous events to the property insured. Lightning is covered whether the fire is involved or otherwise.

You can extend the standard fire policy to cover loss or damage caused by the extraneous perils specified subject to an additional premium as stipulated in the Revised Fire Tariff.

The normal Fire Insurance is limited to cover on material damage of the company’s tangible assets but does not include losses in earning capacity, i.e. profits due to partial or complete cessation, standing charges and increased cost of working as a result of fire and/or other extended perils.

Fire Consequential Loss is complimentary to Fire Insurance. While Fire Insurance seeks to provide indemnity for loss or damage to the physical property of the Insured, the prime objective of Fire Consequential Loss is to provide indemnity to the Insured for loss of Gross Profit due to reduction in turnover and increased in cost of working consequent upon interruption of the Insured business caused by perils covered under the policy.

With a Consequential Loss policy, it is possible to meet the cash needed to pay the overheads or standing charges, salaries to employees who remains but are not fully productive, increased cost of working to meet cost of notice and redundancy payments for employees to be dismissed or laid off.