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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.”