Kuala Lumpur, 17 January 2025 – As Chinese New Year approaches, the skies are soon to be painted with vibrant bursts of lights. However, these dazzling displays pose real risks, including accidental fires and property or vehicle damage, which could lead to significant financial losses. Therefore, it’s important to ensure adequate insurance protection against potential fire hazards.

While the festive season brings joy and excitement, it also increases risks. The recent tragic fire incident in Teluk Intan, where a hall was burnt down and endangering over 500 attendees sparked by fireworks1, serves as a stark reminder of the potential fire dangers. Furthermore, the alarming number of building fires reported in 2024, exceeding 9,000 cases2, with a significant portion attributed to electrical faults, underscores the critical need for fire safety precautions and adequate fire, home and property insurance coverage.

“Fireworks, while adding to the festive cheer, can increase personal injury and fire risks if not handled carefully,” said Chua Kim Soon, CEO of PIAM. “Electrical malfunctions and short-circuiting are also leading causes of home fires in Malaysia.”

Key Findings:

  • Fire Incidents:
    • In 2023, fire contributed 8.6% of total claim amount, approximately RM715 million, ranking second after motor claims in the General Insurance Industry3.
    • Selangor recorded the highest estimated property losses due to fire and rescue cases in 2023 at RM902 million, followed by Sabah at RM489 million and Pahang at RM301 million4.
  • Type of Damages: Buildings and contents accounted for 14% of fire-related cases, with residential houses and shops being the most affected.
  • Residential vs. Commercial Fires: In 2023, residential fires accounted for 56% of all fire incidents, while commercial fires accounted for 44% of 4,932 cases.

PIAM urges homeowners and businesses to ensure that their properties are insured against fire and natural disasters such as floods. It is also important to review the value of the property to be insured, which should only reflect the cost of rebuilding your property, excluding the value of the land. Insurance companies offer various options to cover fire and natural disasters. You can either reach out to your agent, broker, or directly contact the insurance company.

Tips from PIAM for Chinese New Year season:

1. Electrical Safety

  • Conduct a home fire safety inspection to identify and address potential fire hazards, such as faulty electrical wiring, overloaded circuits and flammable materials.
  • Install and maintain smoke detectors and fire extinguishers.
  • Be mindful of electrical dangers during peak usage periods.
  • Turn off switches and unplug electrical appliances when not in use, particularly before leaving home for a long period of time.
  • Avoid overloading power sockets and using faulty electrical wiring.
  • Ensure that electrical items have SIRIM certification.
  • Schedule regular checks of electrical systems by certified professionals. Wiring works must adhere to standards set by the Energy Commission.

2. Fireworks Safety

  • Keep a fire extinguisher at home or have a good water source nearby
  • Keep fireworks away from other adults and children. Even sparklers burn at up to 2,000 degrees, 20 times the boiling point of water making them extremely dangerous.
  • Keep your pets away from fireworks as they have sensitive hearing, as the noise can hurt them.

Make sure to have the right amount and type of insurance for your home, property, and vehicle to safeguard your family and finances.

References:

1 Malay Mail (5 November 2024): Hall burns down in fiery end to birthday bash in Teluk Intan; cops suspect fireworks sparked blaze; organiser arrested. Malay Mail www.malaymail.com/news/malaysia/2024/11/05/hall-burns-down-in-fiery-end-to-birthday-bash-in-teluk-intan-cops-suspect-fireworks-sparked-blaze-organiser-arrested/155843?utm_source=chatgpt.com#google_vignette
2 Gerard Gimino (21 November 2024). Cases of residential fires troubling. The Star. www.thestar.com.my/news/nation/2024/11/22/cases-of-residential-fires-troubling.
3 Insurance Services Malaysia (October 2024). ISM Statistical Bulletin (SB-FINANCE-00007-24).
4 Strategic Planning and International Division (November 2024). Time series statistics MyKPKT 2019-
2023. Ministry of Housing and Local Government. https://www.kpkt.gov.my/kpkt/resources/user_1/GALERI/PDF_PENERBITAN/PERANGKAAN%20TERPILIH/STATISTIK_MyKPKT_2019_2023.pdf