KUALA LUMPUR: Etiqa General Insurance Bhd and the Malaysian Institute of Property and Facility Managers (MIPFM) today signed a Memorandum of Understanding (MOU) to offer professional indemnity (PI) insurance exclusively for MIPFM members and property management firms.
The Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEP) Malaysia requires all registered property management firms to have a minimum of RM500,000 PI coverage before renewing their annual licenses.
"Etiqa had agreed that the insurance scheme is designed and tailor-made specifically for MIPFM members and that this insurance scheme will not be available to other similar associations or institutions.
"To have an insurance scheme that is for MIPFM members only is part of our duties as MIPFM executive committee to serve the best for its members and the institute,” said MIPFM president Datuk Seri Kamarulzaman Mat Salleh at the MOU signing ceremony here today.
His speech was read by his deputy president Ishak Ismail.
At the press conference, Ishak said as property management is now a regulated profession, it is important to protect against legal liability arising from wrongful and negligent acts or errors.
"We (MIPFM), an umbrella (group) of over 1,500 registered property managers think that it is important to be well covered from the insurance and risk management perspective.
"Besides, this MOU provides members of this institute with a reasonable price to enjoy adequate coverage at a competitive cost,” said Ishak.
Etiqa General Insurance Bhd chief executive officer Fukhairudin Mohd Yusof said the insurance plan would provide easy access for MIPFM members to obtain and renew their professional indemnity insurance policies.
"The accumulated experiences we had on the international front with multi-national reinsurance have led us to write the complex policy of professional indemnity with value-added benefits to MIPFM.
"This product is not an on-the-shelf product as it needs to be carefully crafted to meet customers’ needs,” he said.
On the upcoming Budget 2023, MIPFM is hoping that the government could provide more support for the property sector, including extending stamp duty exemptions to the primary as well as the secondary markets.
It is also asking for the real property gains tax (RPGT) to be reduced to 20 per cent from the current 30 per cent.
"This is to give more room to the seller to use the (gains) during these tough times.
"In the property management industry, we hope the government, through the housing ministry, can set up a maintenance fund especially for the low and medium cost properties, to help with the poor collection on maintenance fees as some property owners are struggling to (balance) living costs,” it said. - Bernama