Hello JMB Malaysia!

By: Admin

Welcome to JMB Malaysia

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 possession.

One of the most impotant duties of JMB is Insurance.

The powers and duties of the JMB are enumerated by Section 8 of the Act which stated

8. (1)(c) 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;

8. (1)(d) to apply insurance moneys received by the Body in respect of damage to the building for the rebuilding and reinstatement of that building;

8. (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 must insured the following insurance:

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
Rent Clause
2. Public Liability Insurance

Legal liability to pay compensation for accidental bodily injury or accidental damage to the property to the Vistors for using the common property of the Building.

Under Section 4 Establishment of a Joint Management Body

(2) The Body established by subsection (1) shall be a body corporate having perpetual succession and a common seal.

(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 & Ommission or Professional Liability Insurance

The Insurer will pay on behalf of any Insured all Damages resulting from any Claim for any Breach of Duty of the Insured.

N/B The policy should be placed immediately after the formation of the JMB.

Strata Title Risks Solution:

Products Offered:

Fire Insurance
Fire Consequential Loss
All Risk Insurance
Crime Insurance ( Burglary & Money)
Plate Glass Insurance
Machinery Breakdown Insurance
Public Liability Insurance
Property Terrorism
Professional Indemnity for Joint Management Body ( JMB) or Management Corporation (MC)


  • Jamie
    August 8, 2022 at 3:38 am

    Hi Sir/Madam,

    May I know what JMB can do to those resident or outsider who misue OKU parking or visitor parking?
    JMB doesnt have wheel clamp temporary.

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