Bank Negara takes control of Tahan Insurance
(The Edge) KUALA LUMPUR: Bank Negara Malaysia has been ordered by the Minister of Finance to assume control of Tahan Insurance Malaysia Berhad (Tahan) effective May 22 to safeguard the interests of Tahan’s policy owners.
Bank Negara said on May 22 the order was made pursuant to subsection 59(4)(a) of the Insurance Act 1996. Tahan is a licensed general insurer with a market share of 1%.
“The order is made due to Tahan’s non-compliance with capital requirements and non-fulfillment of the capital restoration plans. The order takes effect from today. Tahan’s business operations will proceed as usual during the period of assumption of control,” the central bank said.
Bank Negara said it has appointed Phoon Soon Keong, an executive director of PricewaterhouseCoopers Capital Sdn Bhd, as its appointee to assume control of Tahan.
Phoon will oversee the whole of the property, business and affairs of Tahan to ensure smooth operations of the company’s business activities in the best interest of policy owners, while assessing the least cost solution for an effective resolution to take place, it said.