Frequently Asked Questions (FAQ)

This section highlights the frequently asked questions (FAQ) for our Malaysian operations.

1. What are the main principles of insurance?
The main principles of insurance are as follows:
  • Insurable interest. The legal right to insure arising from the legitimate financial interest which a person has in a subject matter of insurance.
  • Utmost good faith. The insured is to disclose to the insurer all material facts regarding the subject matter of the insurance and the circumstances pertaining to it which will influence a prudent underwriter in deciding the acceptance of the risk or the premium to be charged. 
  • Contract of indemnity. A contract to make good or restore, the insured to the same financial position immediately before the loss or damage by way of payment, repair, replacement or reinstatement. 
  • Contribution. The insurer is liable only for the insurer's rateable proportion of the loss or damage in the event there are other  insurers insuring and liable for the same loss or damage. 
  • Subrogation. The right of an insurer who has indemnified an insured for a loss may exercise the insured's right to claim from third party in respect of the loss. 
  • Proximate Cause. The 'dominant or effective cause' that attributed and leads to a loss event.


2. When would I receive my policy?
In the event that you do not receive your policy within 14 days from the submission date of complete documents, please contact us.


1. Do all Insurance companies apply the same premium rate?
No, except for Fire and Motor Insurance which are tariff rated.


2. How do I determine the value of my house/building for insurance purpose?
The basis of valuation for the determination of the sum to be insured (excluding land) is either  the market value or reinstatement basis (as new but not superior) irrespective of  outstanding loan amount if any. Property valuers are the best parties to provide the correct valuation for buildings. 


3. How do I determine the value of my car for insurance purpose?
You may refer to for your current market value.


4. How do I determine the value of properties for insurance purpose (eg. office equipment, machinery, household contents, personal effects, etc)?
The basis of valuation for the determination of the sum to be insured is either on market value (less depreciation) or replacement value (as new but not superior) of the same make, model, and year of manufacture.


5. Can I apply the same NCD earned to more than one vehicle under my name?
No. The NCD (No Claim Discount) is applicable to one vehicle at any one time but is transferable between same type of vehicle eg. private car to private car.


Electronic Credit Payment (ECP)
1. Why should I choose to receive funds via ECP?
  • Faster - funds are available in your bank account on the same day or latest by the following day of payment date.
  • Convenient - removes the need to travel and deposit the cheque at the bank as payments are credited directly into your bank account.
  • Safer - misplaced, lost, fraud or expired cheques will no longer be an issue.
2. Will there be any registration fee imposed if I want to use ECP?
No, you can enjoy the service free of any charges.


3. What do I have to do to receive funds via ECP?
  • Provide your own bank account detail to us;

       Important Note: Please ensure the IC Number or Business Registration Number maintained by your bank is  
       same as  the number you lodged with us. 


4. Is there any restriction on the type of bank account that can be assigned for ECP?
You can assign any of your existing active saving or current account held under your name or in the case of a joint account that has your name as one of the account holders. The saving or current account must be maintained with one of the financial institutions offering MEPS Inter-Bank GIRO (IBG) service.

Please refer to the following website for a current list of IBG members


5. Can I change my bank account details?
Yes, you are allowed to change your bank account details by submitting the required supporting documents substantiating your request to us. No cost will be charged for this purpose.


6. When will my bank account be credited?
Payment will be made electronically into your bank account by us. Generally, funds will be made available in your bank account within the same day of payment. However, depending on the processes adopted by your bank, you may receive the payment on the same day or a day after.


7. Will I be notified once Lonpac has made the payment?
Yes, an e-mail or sms will be sent to you once the payment has been made. Therefore you have to provide us your email address or mobile phone number to  receive electronic notification.


8. What will happen to funds that cannot be credited into my bank account?
If funds cannot be credited into your bank account due to, for example, incorrect bank account number, closed or inactive bank account, we will contact you to validate your bank account details. However, this may lead to unnecessary delay to the payment process. To avoid this,  please ensure that your bank account is correct and active upon providing such information to us. Otherwise, we will arrange to remit the payment to you via cheque.