“With the opening of MHinsure to travellers in Malaysia, Singapore and Australia, we are confident we will see more than 70 per cent growth in premium sales by end of next year,” said Muzzaffar Othman, MAS Senior General Manager in the Managing Director’s Office.

He said the national carrier’s plan is to expand MHinsure to other markets in the near future.

Since the launch of MHinsure in Malaysia last year, about 25 per cent of Malaysia Airlines’ passengers have bought the travel insurance online.

Now travellers, whether flying with Malaysia Airlines or other airlines, can buy MHinsure at www.malaysiaairlines.com, it said in a statement.

Passengers travelling with the national carrier will have an option to buy the insurance with the air ticket, while other customers can just proceed straight to the MHinsure section, it said.

“In Malaysia, the basic plan rate starts from RM15 for domestic travel, RM23 to Asean and RM40 for other international destinations for a five-day trip. Besides the normal coverage, our customers can get access to 24-hour Emergency Medical and Travel Assistance,” said Muzzaffar.

The airline said the growth of MHinsure will be expedited by the completion of various website initiatives such as speed and payment getaway enhancements.

The number of monthly website visitors has since increased to 40 per cent while internet sales have grown from some 30,000 to about 150,000 bookings compared to last year, it said.

MHinsure is designed to offer quality and extensive coverage at an affordable price with a comprehensive 24-hour worldwide assistance.

The insurance covers medical expenses, cancellations, baggage losses, delays and other travel disruptions.

MHinsure is available online at www.malaysiaairlines.com. In Malaysia, the insurance can also be purchased by calling the MHinsure Sales at 1-800-806-376, MAS Call Centre at 1-300-88-3000 or MAS ticketing offices at KLIA, KL Sentral and Subang Skypark.

Provisions indemnifying directors or officers.
140. (1) Any provision, whether contained in the articles or inany contract with a company or otherwise, for exempting anyofficer or auditor of the company from, or indemnifying him against,any liability which by law would otherwise attach to him in respectof any negligence, default, breach of duty or breach of trust, ofwhich he may be guilty in relation to the company, shall be void.

(2) Notwithstanding anything in this section a company may pursuant to its articles or otherwise indemnify any officer or audit or against any liability incurred by him in defending any proceedings,whether civil or criminal, in which judgment is given in his favour or in which he is acquitted or in connection with any application in relation thereto in which relief is under this Act granted to him by the Court.

Power to grant relief
354. (1) If in any proceeding for negligence, default, breach of duty or breach of trust against a person to whom this section applies it appears to the Court before which the proceedings are taken that he is or may be liable in respect thereof but that he has acted honestly and reasonably and that, having regard to all the circumstances of the case including those connected with his appointment, he ought fairly to be excused for the negligence,default or breach the court may relieve him either wholly or partly from his liability on such terms as the Court thinks fit.

(2) Where any person to whom this section applies has reason to apprehend that any claim will or might be made against him in respect of any negligence, default, breach of duty or breach of trust he may apply to the Court for relief, and the Court shall have the same power to relieve him as under this section it would have had if it had been a Court before which proceedings against him for negligence, default, breach of duty or breach of trust had been brought.

(3) The persons to whom this section applies are—
(a) officers of a corporation;
(b) persons employed by a corporation as auditors, whetherthey are or are not officers of the corporation;
(c) experts within the meaning of this Act; and
(d) any persons who are receivers, receivers and managersor liquidators appointed or directed by the Court to carryout any duty under this Act in relation to a corporationand all other persons so appointed or so directed.

Here are some ‘risky facts’ to ponder about when you are accessing the risk faced everyday by business entities.

Shareholders
- Prospectus contains an untrue statement of material fact or misstated a material fact
- Prospectus fials to state a material fact required to be disclosed.
- Failure to maximize shareholder’s value
- Failure to act in the best interest of the company/shareholders
- Breach of Fiduciary Duty

Example: Following a restatement of past earnings, the share price of a local company listed on Bursa Malaysia fell and this was investigated by the Securities Commission. As a result several shareholders filed a derivative class-action lawsuit.

Employees
- Wrongful termination
- Sexual harassment
- Employment-related defamation

Example: After repeated warnings regarding absenteeism and poor performance, an employee takes a director and a department manager to court – alleging unfair treatment.

Regulatory Bodies
- Failure to comply with listing requirements and regulations, especially with regards to corporate governance initiatives
- Failure to operate facilities in a responsible manner – e.g. employees’ health and safety or pollution
- Allegations of not acting in the best interests of shareholders but for personal profit or advantage (i.e. insider trading)

Example: The Securities Commission launches an investigation into 2 bank directors after allegations of insider trading. In order to counter these allegation, a comprehensive defense case must be conducted, incurring considerable cost.

Customers
- Breach of contract
- Unfair trade practices

Example: A customer sues the director of marketing and sales after advertising materials approved by the director provide incorrect pricing details of the product range.

More examples…

Directors: Tom, a former chief financial officer is made redundant following the merger of two companies. Tom sues the current chief executive officer alleging bad faith and wrongful termination.

Suppliers: A supplier initiates litigation proceedings against a director who has allegedly made the company breach the contract by failing to procure the company’s payment for goods received or services provided within a specified period of time and this leads to the supplier incurring financial loss.

Mistake 1: Did not contact the Insurer during an emergency

Let’s face it, we all panic during an emergency. That’s why it’s called an emergency, a state for us to justify our panic-driven behavior. And it is during such a time that a calm and collected mind would provide the best solution to get us out of the emergency, with the most minimal damage or loss.

And so it is when you are traveling out there in a foreign land. Mistake number one is of course, not having any proper travel insurance coverage. I’m not saying you should pay through your nose for travel insurance, but unlike traveling domestically, getting stranded in an emergency while traveling overseas can really complicate things. So getting some basic coverage can at least minimize the psychological burden, while it buys you some time to analyze the situation.

However, one of the most common mistake for people who are covered with travel insurance is that they often did not notify their insurer immediately. They do not realize that the travel insurance also comes with advice on how to get the most effective treatment or solution for their emergency. Also, by contacting the Travel Insurer immediately, you can also get the necessary information on what paperwork you must obtain from the relevant authorities to ensure a speedy claim when you are back to your home country. Most people just assume that by filling up a claim form provided by the Travel Insurer, they will get their reimbursement. This is definitely not the case- all claims must be backed by authentic and relevant documents.

Yes, it’s also true that the travel insurance do not cover every emergencies, but one should utilize the facility provided by the Travel Insurer where you can ask for the best course of action.

Mistake 2: Did not submit original documents when making a claim

Most if not all Travel Insurer only accepts original receipts for claim submission. Yes, if you have lost your original receipts, you will have some problem verifying the authenticity of your claim. The alternative is to probably request for a copy of receipt from the relevant party and have them verified by either the party involved. Some Travel Insurer might also allow you to use your original credit card statement, verified by the card issuing bank.

However, by not providing the original bills or receipts for the payments you have made, you are just putting yourself in between a rock and a hard place. Don’t take it as an insult on your character when the Travel Insurer says that they will not reimburse you until you show up with the original documents. No one is saying your dishonest, it’s just that, to proceed with the claim, photocopy of your payment documents are not going to make it through the Claims Department, period.

There is a reason why Travel Insurers insist on original documents, in fact, it is the practice of all Insurer that all monetary claims that is to be reimbursed to the policyholder must be furnished with original and authentic payment receipts. This is to ensure that policyholders do not claim the bills from other Insurers and try to profit from the claim.

So, no matter what policy is being practiced by the country you have traveled to, you must insist on the original copy of all the payments you have made. Do not settle for photocopy or carbon-copy. You have the right to receive original receipts as proof of your payments.

Mistake 3: Did not submit the claim within the stipulated time period

Most people would think that as long as they have the proper documentations in place, they can submit their claim anytime. Nonetheless, it’s a good idea to check the details of your travel insurance policy before making any assumptions on the time given for you to submit your claims. A ‘Notice of Claim‘ clause in a standard Travel Insurance policy might look like this:

NOTICE OF CLAIM: Notice of claim must be given to the Company within thirty (30) days after the Date of Loss/Accident. The Policyholder and/or Insured Person hereunder shall produce for the Company’s examination pertinent documents at such reasonable times and shall co-operate with the Company in all matters pertaining to any loss and/or claims. Failure to comply with this condition may prejudice the claim. Notice of claim given by or on behalf of the Policyholder and/or Insured Person to the Company, or to any authorized official of the Company providing information sufficient to identify the Policyholder and/or Insured Person shall be deemed notice to the Company.

In some cases, it might not be feasible to send in or fax a written notification to the Travel Insurer. Hence, it’s a good idea to always keep the Travel Insurer’s 24 hours emergency assistance hotline number and your travel insurance policy number when you are traveling. Check out this link for a list of Malaysia Travel Insurance Provider’s emergency hotline numbers.

For example, let’s say that you’ve lost your passport the moment you’ve arrived in your destination. Under most travel insurance, the loss of travel documents entitles you for a claim. And it would be another 2 months before you are heading back to Malaysia. Under this circumstance, it would be wise for you to call up the Travel Insurer and inform them about the loss and then have them advise you on the steps you need to take to ensure a speedy claim. If you wait till you come back to Malaysia, which is more than 30 days after your loss, you might need to furnish all the reasons of you not being able to notify the company and all the unnecessary ping-pongs with the Travel Insurer’s Claim Department.

So, to make your life easy, always contact your Travel Insurer whenever you have an emergency, regardless of whether you are entitled for a claim or not.

The Nakuru Cat Burglar is remarkable for its resemblance to the baboon. (Nakuru, Kenya)

Though I’ve had more tropical diseases than the average petri dish and once had to survive in Iceland for 24 hours without so much as a toothbrush and clean socks, I have been fortunate that I’ve only once had to make a claim on my travel insurance.

Travel insurance is one of those things that I faithfully buy but hope never to get my money’s worth from. Over the years I have probably spent enough money to pay for a pretty decent vacation, but so far apart from one visit to a doctor in London (see “How To Get A Head in Africa” 10 July 2008), I’ve never got back a penny – but I have scored a ton of peace-of-mind.

The silence at the end of the telephone line when I called the insurance company about my tick suggests it might well still be discussed around the water cooler. But I am glad to know that I am not the only one who has entertained or bemused travel insurance companies. Here are a few others that are likely pinned to a bulletin board beside Terry the Tick:

- A pensioner, whose false teeth fell out while he vomited over the side of a cruise ship, put in a claim to his travel insurers for new dentures under “lost baggage”.

- A young traveller, distracted by the appearance of a group of women in bikinis, broke his nose when he walked into a bus shelter in Athens.

- A traveller lost his wallet in a drain in Israel. Instead of filing a police report and making a claim through his insurance, he instead stuck his hand down the drain – only to be stung by a poisonous scorpion. He ended up claiming for both a lost wallet and a hospital visit.

- A man who claimed for holiday cancellation when refused boarding was turned down by his insurance company when it emerged his ticket was for a flight from Manchester, New Hampshire…not from Manchester in the North West of England.

- Returning from India, a traveller filed a claim with his insurance company for $1100 worth of “Bombay Mix” snack food that he had lost from his luggage enroute. The insurance company performed a few quick calculations and determined that at less than $2 per 250g bag, the man would have had to have misplaced more than 137 kilograms of munchies…and refused to pay.

- A couple on vacation in Malaysia returned to their lodge to find that monkeys had climbed in through an open window, stolen their clothes and scattered them throughout the neighbouring jungle.

- A family’s camping holiday was ruined when a parachutist from a nearby airbase missed his target and landed squarely on their tent, destroying their equipment. Their insurer rejected their claims as they weren’t insured against accidental damage.

And in the category of needing a vacation to recover from a vacation:

- A holidaymaker in Sri Lanka needed hospital treatment after a coconut fell on her head while she was reading in the shade below.

They claim that the move, which takes effect from today, would adversely affect consumers, agents and the insurance industry in general.

Perwakim president Liza Lau said a copy of the memorandum was also handed to the office of Prime Minister Datuk Seri Najib Tun Razak, the Ministry of Finance and Ministry of Human Resources.

Lau led more than 50 agents in a peaceful picket in front of Bank Negara yesterday. The crowd dispersed after about two hours.

She said there are a total of 50,000 insurance agents nationwide of which 40 per cent are full-time agents.

Insurance agents earn a 10 per cent commission from the insurance companies.

When getting a standard travel insurance policy in Malaysia for your overseas trip, you might have come across the term “24 hours Worldwide Travel Assistance”. Most people wouldn’t have the slightest idea of what it meant, let alone utilizing the benefit.

Under a typical Travel Assistance programme, you can call up the number listed in your policy and seek their assistance in planning for your trip. Below are a few standard assistance that you can obtain from an Insurer. Do note that this is only a reference, and each Insurers would have different features.

A. Emergency Assistance Services
a) Medical reference to medical service providers;
b) Advance payment or guarantee for payment of Medical Expenses;
c) Emergency Medical Evacuation;
d) Repatriation of Mortal Remains.

B. Technical Services
a) Coordination with relevant parties to recover or locate lost/stolen baggage and personal effects.
b) Coordination with relevant parties to recover, locate and replacement of travel documents.
c) Provision of reference to legal advisors.

C. Pre-Trip General Services
a) Advise on procuring travel documentation.
b) Advise on immunizations, epidemics and available preventive measures.
c) Information on local government offices and political and environmental condition Overseas.
d) Information on currency exchange rate, location of major banks and public holidays.
e) Information on weather condition.

Some of the health and medical plans offered in Malaysia also provides such services and there’s usually a hotline number listed in your policy contract.

You should try out the Travel Assist Programme when preparing for your next oversea trip.

Malaysia’s general insurers have suffered losses from underwriting motor insurance last year, its fifth straight year, a reflection of the high rate of accidents and theft in the country.

The losses have also been rising every year for the last five years, said the General Insurance Association of Malaysia (PIAM).

The combined loss ratio for motor insurance business last year was 115.5 per cent compared with 114.1 per cent in 2007 and 104.4 per cent in 2006.

The ratio indicates the industry’s overall underwriting profitability. A combined ratio of less than 100 per cent means insurance firms are making money but anything over 100 is an underwriting loss.

Although gross direct motor insurance premiums increased by 10.1 per cent to RM4.89 billion last year, PIAM said the growth rate was unlikely to be repeated this year.

“This growth rate is unlikely to be sustained in 2009 in view of the current economic slowdown. Insurers have also expressed their concerns over the increasing claims payouts,” it said in a statement yesterday.

Due to higher losses, insurers are getting tougher on their underwriting controls for motor insurance beginning this year.

These measures, PIAM said, includes the application of premium loadings or the extra charges for those deemed to have higher risks.

Insurers are also more picky in approving new policies and renewing existing ones.

This has led to some vehicle owners experiencing difficulties renewing insurance, especially third party insurance cover.

“The fact that claims ratios for third party bodily injury claims which have exceeded 100 per cent for many years skyrocketed to 262 per cent in 2007 and 340 per cent in the first half of 2008 is a key contributory factor to this development,” PIAM said.

PIAM said that since 1992, the industry had formed the Malaysia Motor Insurance Pool (MMIP) which provides motor insurance to vehicle owners who have difficulty or are unable to obtain motor insurance from normal commercial insurance market.

“The MMIP was formed to ensure that all vehicles on the road would never be without access to the minimum motor insurance cover required by law,” PIAM said.

When it comes to setting up a critical illness fund, the number one reason why most people are not covered sufficiently is because of the expensive premium. It’s not just because there’s an increasingly higher chances of us being diagnosed with critical illness, it’s also because most of the critical illness plans in the market is tied with either a whole-life insurance policy or an investment-linked insurance policy. With such a tie-up, you not only get insurance coverage, the policy premium is also participating in the investment activities of the Insurance Company, which means you can expect return in the form of bonuses whenever the Insurance Company declare them. However, this would also meant that you will be paying quite a hefty premium for the coverage as well as for the prospect of earning cash bonuses from the insurance policy.

This has invariably caused many middle and lower income households unable to protect themselves from potential financial disaster should the breadwinner of the family struck with critical illness. Yes, apart from news of being diagnosed with illness, the breadwinner is more worried that the entire household’s savings can easily be wiped out in an instance for his treatment.

However, despite these these doom and gloom, there are still insurance companies that package their critical illness plans without tying it up with a whole-life or an investment-linked policy. Like a personal accident policy that is renewable annually, these critical illness plan are much more affordable and is a good alternative for those who might much idle cash in their pocket after paying for living expenses. A typical term critical illness policy can protect up to RM150,000. The premium of these policies usually increases with age and there will be no cash bonuses declared by the company. Since it’s a term policy, you also do not get any surrender value once you terminate the policy. You can check out these affordable critical illness policy here.

It’s important to note that there are ways that we can reduce our risk of being diagnosed with critical illness. We can control our eating habit and at the same time ensure that we have sufficient exercise. Awareness of the causes of critical illnesses should also be part of the preventive measures. Yet, a prudent risk management strategy is to always be prepared for the worst case scenario. Ensuring that you have a sufficient critical illness policy would be one of the crucial step to protect you and your family against an unpredictable emotional and financial crisis.

DO you buy travel insurance before you travel? According to Malaysian Association of Tour and Travel Agents (Matta) president Ngiam Foon, not many Malaysians buy additional insurance protection when they travel.

Many mistakenly assume that their existing long-term insurance policies will protect them when they are overseas.

He said there have been many cases of Malaysian travellers, not covered by insurance, facing difficulties when they were injured or involved in accidents overseas. Ngiam Foon urged Malaysians to invest in suitable travel insurance products when going on vacations. Such travel insurance is vital in ensuring that Malaysians get proper coverage in case of travel emergencies.

He said that many Malaysians also mistakenly assume that credit card purchases of airline tickets will automatically provide complete insurance protection for them. Many insurance companies offer inexpensive add-ons, which provide a wide range of services that can protect travellers in case of medical emergencies, robberies and accidents.

“In some countries, it is vital that we have the option of getting access to evacuation services, for instance, in the event of a medical emergency. There are many products in the market for such protection. It is just that many Malaysians are unaware of such services which are available at a low cost.” With just a minimal payment, travellers have access to 24-hour emergency services in many parts of the world.

Ngiam Foon said medical services are expensive, especially in developed countries, and there have been many cases of Malaysian travellers facing great trauma, distress and financial difficulties due to high costs as a result of not having adequate insurance protection when overseas.

Ngiam advised travellers to check with their licensed travel and tour agents for more information on travel insurance products. “It is also important that prospective buyers ensure that they are dealing with licensed travel and tour agencies which have access to pertinent information to help customers make informed choices,” Ngiam Foon said.

Matta has some 2,100 members in the country and is the country’s largest travel and tour association. While industry statistics on the purchase of travel insurance by Malaysians over the last several years are unavailable, Ngiam Foon said, from Matta’s perspective and experience, the adoption rate of travel insurance products among Malaysians was still very low and needed to be boosted.

Ngiam Foon said Matta had been in discussions with several insurance companies to provide “cashless” insurance coverage to travellers. Under such coverage, when there is a need for medical services, a person needs only show evidence of the insurance coverage without footing the bill upfront. These cashless insurance products are expected to be available to travellers soon.

We provide the following types of travel insurance coverage:

a) Individual Travel Plan
b) Individual Annual Travel Plan
b) Family Travel Plan
c) Married Couple Travel Plan

Select your destination here and get protected on your trip!

Promotion: Free Luggage Lock with every policy purchased while stock last!
Click here for more information.