Malaysia Insurance Online Your Trusted Malaysia Insurance Services Provider

(Business Times, 7th November 2009) Insurers and takaful operators have agreed to incorporate into their motor insurance policy a reference point to determine the market value of vehicles.

Last month, both Bank Negara Malaysia and the General Insurance Association of Malaysia (Piam) endorsed Insurance Services Malaysia’s automotive business intelligence system (ISM-ABI).

The ISM-ABI is the only approved system for vehicle valuation among financial services companies in Malaysia.

“The introduction of the new system for motor insurance is in line with practices in other developed markets,” said ISM chief executive officer Carl Rajendram in Petaling Jaya yesterday.

Rajendram said that most major motor insurers and takaful operators are in the process of adopting the new and more transparent system for motor insurance starting 2010.

“It is part of the modernisation of Malaysia’s motor insurance and takaful cover announced recently and will ultimately benefit the consumers, insurance and takaful companies,” Rajendram said.

“The entire automotive industry is moving towards greater competitiveness and efficiency and we are confident that the ISM-ABI will play a pivotal role in driving this objective among all stakeholders,” he explained.

With the new service from ISM, insurance and takaful companies now have the ability to generate renewal notices with the current year sum insured with the corresponding premium to be paid.

“The services increase transparency in the whole motor insurance process not only for purchasing insurance but also during claims,” Rajendram said.

With the new system from ISM, insurers and takaful operators may also choose to pre-determine the compensation upon theft and total loss claims by referencing the database.

“Consumers are also able to verify the vehicle’s market value themselves from the website and access the same information that insurers are accessing,” he said.

The new service will reduce uncertainty when insuring a vehicle and reduce dissatisfaction that consumers experience when making a claim.

(Business Times, 6th JAN 2010) Captain K.H. Chia says he is resigning on his own accord to pursue his own aspirations and hints that his next move might be in the life insurance segment

Kurnia Insurans (Malaysia) Bhd managing director and chief executive officer (CEO) Captain K.H. Chia has resigned, after just 17 months on the job.

Chia told Business Times that he had tendered his resignation, which will be effective at the end of this month.

Kurnia Asia, which owns the country’s number one motor insurer, has not decided who will take over from Chia.

His departure followed the resignation of Datuk Adrian Loh from the board of Kurnia Asia Bhd which was announced on Bursa Malaysia’s website yesterday. Chia took over the post of Kurnia Insurans CEO from Loh on July 1 2008.

“My resignation is on my own accord. It’s a new year and I want to pursue my own aspirations,” he said. Chia hinted that his next move might be in the life insurance segment.

The 30-year veteran of the insurance industry started as a life insurance agent and was previously the CEO of Citic-Prudential in China.

A company insider said Chia had indicated that he wanted to move back to China.

“Chia had mentioned his intention to resign about two months ago. So it was no surprise that his decision to step down was made known to the senior management team on Monday,” the source told Business Times.

Chia was said to have made up his mind to join the Kurnia group after talking to Tan Sri Kua Sian Kooi, who is the chairman of both Kurnia Asia and Kurnia Insurans.

“Our relationship remains on good terms,” Chia said.

He was responsible for hauling Kurnia Insurans, which accounts for nearly 95 per cent of Kurnia Asia’s annual revenue, out of the red.

Under Chia’s leadership, Kurnia successfully launched the Transformation of Operations and Performance exercise in July 2007. The group has since turned around, with a net profit of RM57.1 million in the financial year ended June 30 2009 from a net loss of RM301.8 million in 2008.

(Business Times) 10 DEC 2009, CHARTIS Malaysia Insurance Bhd, formerly AIG General Insurance Malaysia, is embarking on a three-pronged strategy to grow its total gross premiums to 7.5 per cent next year, says its top executive.

Chief executive officer Rob Ryan said the company is strengthening its agency force, expanding its branch footprint nationwide and introducing various diversified products to boost its performance next year.

For the financial year ending December 31 2009, Ryan expects growth to remain flat compared with last year.

Gross written premiums rose 8.2 per cent to RM479 million in 2008 from RM442.6 million in 2007.
As of November 2009, Chartis Malaysia has recorded RM400 million in gross premiums.

The general insurer, represented by some 2,800 agents, which contributes about 54 per cent to its turnover, wants to increase its intake to 3,000 agents in the coming year.

“Our focus for 2010 will be targeted more on the small business sector, which is the backbone of the Malaysian economy. This is where we want to increase our presence,” Ryan told newsmen at Chartis brand launch in Kuala Lumpur yesterday.

He said Chartis plans to offer package policy for fire and liability for the small business community primarily through its agency force.

“We are also looking to expand our household contents insurance, the country’s penetration in this segment is only at about 5 per cent,” he said.

Another new product Chartis has recently introduced is the aviation insurance, which Ryan claims the company is the first locally incorporated insurer to offer directly in the country.

Ryan said as the operations and the team in Malaysia is getting stronger, Chartis will be opening at least three new branches in 2010.

Following the new branch to be launched in Klang, Selangor, on December 21, the insurer is planning to open another office in Sungai Petani, Kedah, in the first quarter of next year.

“We are also looking to open another office in Seremban, Negeri Sembilan, and at least one more in the East Coast next year,” he added.

Chartis is optimistic on Malaysia’s insurance prospects and is keen to continue investing in the country.

“We want to double our business here in the next five years,” Ryan said.

In the pipeline, Chartis is planning to set up a regional processing centre for Southeast Asia that would create 1,500 jobs

“The plan is to expand that globally,” said Chartis Southeast Asia’s regional president Leslie Mouat without disclosing the budget.

The proposed centre will initially be set up in Technology Park Malaysia in Bukit Jalil, Kuala Lumpur, and will eventually move to a bigger site in Cyberjaya, Selangor.

The Chartis name took effect on December 7 this year and is part of a worldwide roll out of the brand to harmonise and provide a consistent look and feel for the company’s operating business.

Chartis Malaysia, with a capital of over RM310 million, is above the 130 per cent minimum capital adequacy ratio required by the Bank Negara Malaysia.

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KUALA LUMPUR, Nov 20 (Bernama) — Malaysia Airlines (MAS) is making it easier for air travellers to buy travel insurance online by opening up MHinsure to Malaysians, Singaporeans and Australians.

“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.

Even if you are not the director of the company, your signature on any contracts representing the Company can make you personally liable, under the provision of Section 140 & 354 of the Companies Act 1965.

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.

20 October 2009, By BERNAMA

KUALA LUMPUR — Public-private partnerships between the government and insurance players will be essential in providing suitable insurance schemes and developing risk mitigating mechanisms particularly when facing catastrophies, says Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz. With the increasing catastrophies that have been associated with global climate change and pandemics, such partnerships will be important when coping up with the resulting losses.

“According to a recent study, economic losses caused by natural and man-made catastrophes around the world in 2008 amounted to US$269 billion. “Asia accounted for the top five worst catastrophes in terms of fatalities in 2008. The recent natural disasters in Southeast Asia and the Pacific Islands also resulted in major destruction,” she said in her keynote address before officiating the 21st Federation of Afro-Asian Insurance and Reinsurance Conference 2009 here Tuesday. Zeti said greater collaborative efforts among industry players in the region in the form of technical assistance and pooling of resources would increase capacity and expertise to underwrite such risks.

“Through such collaboration, the ability for the insurance industry to underwrite and reinsure risks based on the requirements of the region can be significantly enhanced,” she added. While several of the advanced economies would continue to be weighed down by weak growth as the slow process of financial resolution continues and the high unemployment delays the recovery process, emerging economies, in general, and Asia in particular, have shown a high degree of resilience, Zeti said.

“While the emerging economies are expected to lead the recovery process, there needs to be a reassessment of the strategies for future growth. Over reliance on export orientation to the traditional markets would increase the vulnerability to external developments,” she added. Going forward, emerging economies now need to achieve a greater balance between external-oriented development strategies and the strengthening of their domestic demand, said the central bank governor.

Zeti said the evolving trends and encouraging growth prospects in respective regions present tremendous opportunities for the insurance and reinsurance industry. She said the overall aggregate financial position of insurers in the crisis affected countries have continued to be strong, and generally not severely affected by liquidity pressures or exposures in the credit derivatives markets.

Earlier losses by insurers in financial market activities had resulted in a shift to “back-to-basics” models, focusing on core underwriting business instead of heavily relying on investments as the main source of earnings. The industry had also benefited from the subsequent upturn in the pricing cycle which has fortified the capital position of insurers and provided the support to maintaining sound underwriting standards. Zeti said these conditions have placed the industry on a much stronger position to withstand the challenges from the current global financial turmoil. She said prospects for higher insurance penetration rate in the region continued to remain positive.

In 2008, insurance premiums accounted for 5.95 per cent of gross domestic product (GDP) in Asia and 3.57 per cent of GDP in Africa compared to 7.29 per cent in America and 7.46 per cent in Europe. She said the changing priorities of the growing population in the region, largely comprising a young workforce in the middle income group, have also enhanced the demand for investment-linked and wealth management products.

by David Masters (InsuranceDaily.co.uk)

The number of UK motorists deliberately crashing their cars to make fraudulent insurance claims is increasing, the Insurance Fraud Bureau (IFB) warned this week.

‘Induced accidents’, or ‘crash for cash’ accidents, as they are more commonly known, involve a driver deliberately causing a crash so as to profit from fraudulent insurance claims.

After the crash, often caused by slamming brakes on a motorway junction forcing the driver behind to crash into them, the fraudsters make claims for damage to their car and for personal injuries they don’t have.

In some cases, they will make personal injury claims for people who weren’t in the vehicle, and use other gang members as ‘phantom witnesses’ who falsely say they were at the scene of the accident and blame the accident on the innocent party.

According to the IFB, induced accidents are becoming a serious problem in the UK, with fraudulent claims adding around £40 to every insurance policy sold to honest drivers.

John Beadle, IFB chairman, said: “The criminal gangs targeting honest motorists are ruthless.

“Innocent lives are being put at risk and fraudulent insurance claims add approximately £40 to every premium paid by honest policy holders each year.”

The Association of British Insurers (ABI) believes that some people are using bogus insurance claims to boost their income during the recession.

“Fraud thrives in a recession, so insurers are intensifying their crackdown on insurance cheats,” said Nick Starling, the ABI’s director of general insurance and health.

(via InsuranceDaily.co.uk) Adventurous holidaymakers have required AXA to revise some of its travel insurance terms to include activities such as Zorbing and Octopush.

With the rise in popularity of experience-based holidays showing no signs of abating, the insurer is reminding holidaymakers that it is essential to have the right level of cover in place before undertaking adrenaline-rush activities.

For the uninitiated, Zorbing involves rolling down a hill inside a giant inflatable ball; the activity can be upgraded to Hydrozorbing by adding a couple of buckets of water.

Octopush is a form of underwater hockey, while Wind Tunnel Flying is a form of indoor sky-diving.

Tree canopy walking is self explanatory once the concept of the suspension bridge is understood and participants in Ringos are likely to be found sliding down slopes in giant rubber rings.

AXA’s lifestyle claims manager, John Dacey, comments: “Swimming with dolphins is so last year.”

The following is some health tips which can be useful for travelers who want to make sure they are physically prepared for their trips:

Medical Advice
Before travel, consult your health professional to discuss:

• Itinerary
• Duration of Travel
• Mode of Travel
• Past Medical History
• Vaccination Requirements
• Pregnancy
• Allergies
• Medications
• Pre-existing Conditions
• Disease Prevention

Tips for long distance travellers:

• Do frequent leg exercise and take deep breaths regularly while seated
• Drink plenty of non-alcoholic beverages to prevent dehydration

The three R’s of Travel Vaccination

1) Routine Vaccinations are regularly administered during childhood / adulthood:

• Tetanus / Diphtheria
• Polio
• MMR
• Pneumococcal
• Varicella
• Meningococcal

2) Required Vaccinations may be legally required when crossing international borders:

• Yellow Fever
• Cholera
• Meningococcal

3) Recommended Vaccinations may be recommended depending on your specific travel destination:

• Hepatitis A
• Hepatitis B
• Typhoid
• Japanese Encephalitis
• Poliomyelitis
• Rabies
• Cholera

Please see your doctor to idenfity your specific needs.