|To : Joint Management Body (JMB) / Management
The Building & Common Property (Maintenance
& Management) Act 2007 (Act 663) was enacted by
the Malaysian government recently for the proper maintenance
and management of buildings and the common property,
after delivery of vacant possession of the premises
to the purchasers but before the Management Corporation
is formed. This new law came into force on April 12,
2007. It applies to Peninsular Malaysia and the Federal
Territory of Labuan.
The JMB must be formed after 12 months delivery of vacant
One of the most important duties of JMB is Insurance.
The powers and duties of the JMB are enumerated
by Section 8 of the Act which stated
1. to insure and keep insured the building to the replacement
value of the building against fire and such other risks
as may be determined by the Body;
2. to apply insurance moneys received by the Body in
respect of damage to the building for the rebuilding
and reinstatement of that building;
3. The Body shall be deemed—
(a) for the purposes of effecting any insurance under
paragraph (1)(c), to have an insurable interest in the
building equal to its replacement value or any value
as determined by the Body; and
(b) for the purposes of effecting any insurance under
paragraph (1)(d), to have an insurable interest in the
subject matter of the insurance.
The Joint Management Body (JMB) must insured the following
1. Fire & All perils Insurance (Min perils
Subsidence & Landslip, RSMD & BOW)
Building – For all the units that is individually
own including all the common property.
In this case when the purchaser have a Loan with the
Bank, the purchaser need not buy an additional insurance
and can use the individual “Certificate of Insurance”
issued from the Master policy.
It should include the following clauses:-
Reinstatement Value (valuation report by an accredited
quantity surveyor at least once in 5 years)
Removal of Debris
Architect & surveyor Fee
Others (To be advice)
2. Public Liability Insurance
Legal liability to pay compensation for accidental bodily
injury or accidental damage to the property to the Visitors
for using the common property of the Building.
Under Section 4 Establishment of a Joint Management
Body (JMB) / Management Corporation (MC)
(2) The Body established by subsection (1) shall be
a body corporate having perpetual succession and a common
(3) The Body may sue and be sued in its name.
(4) The Body shall comprise the developer and the purchasers.
As the JMB is a body corporate the volunteered committee
members can now be sued by the purchasers for Breach
of Duty. An E&O or a PL policy to protected the
personal liability of the individual committee.
3. Error & Omission or Professional Liability
The Insurer will pay on behalf of any Insured all Damages
resulting from any Claim for any Breach of Duty of the
The policy should be placed immediately after
the formation of the JMB.
Writing and Servicing insurance policies for condominiums,
apartments and flats requites impeccable skills and
knowhow. Insurer with over 100 years history and ACPG
had more than 22 years of field experience, we have
designed a comprehensive product that would meet your
association’s unique needs.
ACPG offer Strata Title Risks Solution: ACPG
Beyond Standard (ABS) Package
1. Fire Insurance
2. All Risk Insurance
3. Crime Insurance ( Burglary & Money)
4. Fidelity Guarantee
5. Plate Glass Insurance
6. Machinery Breakdown Insurance
7. Public Liability Insurance
8. Professional Indemnity / Management Liability / Error
& Omission (E&O) for Joint Management Body (
JMB) or Management Corporation (MC).
For more information visit us at http://www.walkinonline.com/store/ACPG.php
under Strata Title Insurance / Apartment or Condominium
Insurance or find us on Facebook Business Link www.facebook.com/acpg.management