Is your home is fully protected?

Buying a dream house is the biggest financial commitment, as there are many things to consider – downpayment, margin of financing, rates, tenure, instalments, mortgage and etc.

Owning a dream home is most likely being the most important and biggest investment in your life. That is where your extra efforts in thoughts come in; identifying the preferred location, viewing the design of the dream house and ultimately purchasing it. Concurrently, you will also need to shop around on the available financing for your dream house that fits your financial ability and compare the features of the similar products offered in the market. Not to forget, you need to pay extra-attention to the fees and charges imposed before making your final decision.

Whether you’re buying your first home or not, unexpected events may lead to a loss of income or a decreased ability to fulfill your financing obligations. That is where a good protection plan will be able to help you in ensuring your financing is paid off and your family won’t have the responsibility to bear your financial obligations.

Takaful plan or insurance plan is crucial to protect your home, whether it’s MRTT / MRTA, takaful keluarga plan / life policy, or even householder or Houseowner plan.

However, do you really have the idea of of how do we protect our biggest investment in life? It means, protecting your financial against any calamities might comes to you, while you still have your financing with the banks.

Property Financing or Housing Loan Protection Plan

When you have enter into the agreement with the bank pertaining to your house financing, there are options of how you can find a financial backup plan to protect your dream house.

1.       Mortgage Reducing Term Takaful (MRTT)

A term takaful plan is designed with the sole purpose of providing financial backup against death or total permanent disability against the buyer. It is offered by the bank to fully settle the outstanding balance in the event of the buyer/borrower dies or strike with the disability. Failing to service the financing, it will end up of loosing the dream house.

On normal occasion, the bank will encourage the buyer to take-up this plan to protect the bank’s interest in the property during the financing tenure. It does not provide any savings or any payout after it matures. In other words, this plan is solely to serve the property financing.

The total sum covered (total sum insured) is reduce progressively in accordance with the reduction in the total financing over the tenure. Total sum contribution (total premium) is calculated based on the age of the person covered (or the buyer) and the total sum covered (or total financing). The final amount, i.e total sum contribution will be adding to your total financing before arrive of calculating the monthly installment that you have to service over the tenure.

This product offers a one lump payment. That is why some buyers may opt with this option as it a hassle free procedures. Buyers may be able to continue life without having to worry about the financial burden that may comes in the future. Some other buyers would prefer other available options like Mortgage Level Term Takaful to protect the property financing.

2.       Mortgage Level Term Takaful (MLTT)

Most banks accept normal takaful keluarga plan (or life insurance plan), provided the total sum coverage is adequate enough to cover the total property financing.

Using this plan againt the financing, offers a more flexibility in terms of payment, as you have options either to pay on monthly, quarterly, half-yearly or on annual basis. Moreover,  the total sum coverage is never reduce unlike MRTT, but stays the same throughout the tenure. You can either choose an endowment plan or term plan, depending on your financial needs and objective. For endowment plan, the best thing about choosing it as it also provide savings and even returns upon maturity.

Some banks do require this policy as a collateral to protect your financing with the bank. Arrangement need to be done by way of giving the bank an absolute right to pay off your financing before the proceeds went to your beneficiaries.

Your MRTT or MLTT plan will only cover the outstanding total financing with the bank. But what will happen to your dream house building when is it burnt down by fire or is damaged by flood or is crushed by the landslide? As a homeowner, you are still liable to serve your installment, and at the same time you will need to incur the necessary expenses to re-build or repairs your home.

Is there any other plan that can serve this purpose?

Differences MRTT vs MLTT

Mortgage Reducing Term Takaful (MRTT)	Mortgage Level Term Takaful (MLTT)
Coverage reduces	Coverage never reduces
No savings at maturity	Savings in return (increase throughout the year)
Proceeds go directly to the bank	Proceeds go to the beneficiaries (family)
Non-transferable	Policy is transferable to other financing / loans
Single payment  (one lump sum)	Various payment frequency (monthly, quarterly, half-yearly or annual basis)
Bank make profit (if MRTT attached to the financing)	You will enjoy the dividend yearly
Cash or top-up to your total financing only	Various methods of payment allowed (credit card, cash, cheque, SI, autodebit)

Contact us at info.teguhbistariservies@gmail.com or 017-2379676 for more information.

Peningkatan terhadap jumlah sumbangan Takaful Motor


Bank Negara (BNM) pursuant to Section 144 of the Insurance Act 1996, has approved the adoption of adjusted Motor Tariff premium rates for policies purchased or renewed beginning 1st January 2012. However, to ensure all members have adequate time to update their systems and notify intermediaries of the changes, the implementation shall take effect on Monday, 16th January 2012.

Perubahan ini juga terpakai kepada semua jenis kenderaan yang dijual di Malaysia Barat dan Malaysia Timur.

Contoh

Kenderaan Persendirian (Komprehensif) - Malaysia Barat

Jenis Kenderaan dan Model : Toyota Camry 2.4

Tahun dikilangkan : 2007

Jumlah perlindungan : RM60,000

Pengiraan jumlah sumbangan perlindungan Takaful mengikut kadar lama :

Jumlah sumbangan asas                   RM1,838.20

Duti setem                                 +   RM     10.00

Jumlah sumbangan Kasar               RM1,848.20

Pengiraan jumlah sumbangan perlindungan Takaful mengikut kadar baru :

Jumlah sumbangan asas                   RM1,855.30

Duti setem                                 +    RM     10.00

Jumlah sumbangan Kasar                RM1,865.30

Peningkatan jumlah sumbangan sebanyak RM17.10 mengikut kadar baru.

**  Nota  - Jumlah sumbangan asas adalah tidak melibatkan manfaat tambahan seperti cermin kenderaan, banjir dll.


Untuk sebarang sebutharga, sila nyatakan maklumat asas berikut:-
1. Jenis Kenderaan (model, cc, tarikh dikilangkan)
2. Jumlah NCD
3. Jumlah perlindungan yang dikehendaki
4. Manfaat tambahan yang diperlukan (cermin kenderaan, banjir dll)

Implementation of the New Motor Cover Framework

As part of the New Motor Cover Framework (the Framework) in addressing the structural issues within the motor insurance sector, Bank Negara Malaysia is pleased to inform on the progress of enhancement measures to improve the claims settlement process and the implementation of gradual premium adjustments since its announcement on 11 March 2011.

In ensuring that the public has access to motor insurance at reasonable premiums, several immediate measures were introduced in May 2011. Among the measures undertaken include ensuring that the public would be able to obtain motor cover from the Malaysian Motor Insurance Pool from any general insurer or their branches as well as from any Pos Malaysia branch nationwide.

To ensure the successful implementation of the identified improvement measures under the Framework, a Joint Working Committee (JWC) was established in April 2011, comprising representatives from key Government ministries, the insurance and takaful industry, consumer and transport groups as well as the Malaysian Bar Council. Several enhancement measures already implemented have resulted in enhanced efficiency of the claims settlement process, with faster turnaround time for claims on personal injury, especially for cases that were settled via court mediation. Further measures to enhance efficiency include the referrals to the Compendium of Personal Injury Awards by judges in awarding compensation for personal injury as well as the enforcement of timelines for obtaining police and medical reports. Other measures for the implementation of further efficiency enhancements include the introduction of a motor insurance claims kit to expedite notification of an accident and claims as well as the establishment of a nationwide 24-hour call centre to provide immediate roadside assistance to accident victims in the first quarter of 2012.

As part of the Framework, the gradual revision in the Motor Tariff premium rates will be implemented effective from 16 January 2012. It will be the first to be undertaken after non-revision for more than 30 years. Over the duration, the levels of car ownership, accident rate and claims in Malaysia have risen significantly. In addition, hospitalization costs, medical expenses and costs of vehicle repairs and spare parts have also increased.

The premium adjustment is in small quantum and to be implemented gradually over a period of four years. The implication on the members of the public and businesses will be marginal. For example, in respect of Third Party cover, motorcycles of 110 cc will experience a premium increase of between RM1.00 - RM3.50 per year only (a maximum of 30 sen per month) over the next four years. For a private car of 1,400 cc, the premium adjustment will be between RM6.00 - RM34.00 per year (a maximum of RM2.80 per month) over the same period. For commercial vehicles such as outstation taxis and buses, the impact of the premium adjustment on the passengers would be minimal at less than 10 sen per passenger per trip.

The adjustment in the Motor Tariff premium rates will be reviewed periodically to ensure that the adjusted premium rates continue to be reflective of the claims experience. The Framework will pave the way for detariffing of the motor insurance premiums in 2016, in which? premium rates will be further differentiated in accordance to the risk profile of individual vehicles and fairer to vehicle owners as those with good claims experience would enjoy much better premium rates than those with higher risk profile.

To ensure that members of the public are aware and able to benefit from the Framework, particularly on the enhancements to the motor claims settlement process, Bank Negara Malaysia and the insurance industry will continue to provide information to the public on motor insurance issues through the consumer awareness and outreach programs that are currently in place.

Members of the public who have any queries relating to the Framework can contact Bank Negara Malaysia at TELELINK: 1-300-88-5465 or visit either the www.insuranceinfo.com.my or islamicfinanceinfo.com.my website. Enquiries can also be forwarded to either Persatuan Insurans Am Malaysia (PIAM) or individual insurers.

Source : http://www.bnm.gov.my/index.php?ch=8&pg=14&ac=2382

Motor tariff premium rates revised

Saturday January 7, 2012

KUALA LUMPUR: A revision in motor tariff premium rates in Malaysia will take effect from Jan 16 on a gradual basis over the next four years.

Bank Negara said at a briefing that the premium adjustment, which would be implemented in small amounts over a measured pace, was expected to have only a marginal impact on the public and businesses.

For example, in respect of third-party cover, motorcycles of 100cc would experience a premium increase of between RM1 and RM3.50 per year over the next four years. For a private car of 1,400cc, the premium adjustment would be in the range of RM6 to RM34 per year over the next four years.

The premium adjustment for commercial vehicles such as outstation taxis and buses, on the other hand, would see only a minimal impact of less than 10 sen per passenger per trip.

Tariff adjustments aside, the element of loading would still apply based on the risk profile and age of the vehicles, but the maximum rate of loading would remain unchanged at 150%.

The upcoming revision in motor tariff premium rates forms part of the New Motor Cover Framework that is aimed at addressing the structural issues within the motor insurance sector to ensure continuous and sustainable motor protection to users.

It will be the first to be undertaken after more than 30 years of non-revision, despite the fact that the levels of car ownership, accident rates and claim incidences have risen significantly over the years, thus putting cost pressures on the country’s motor insurance industry.

Malaysia now has 19 million registered vehicles.

Under the new framework, Bank Negara said the adjustment on motor tariff premium rates would be reviewed periodically to ensure that the adjusted premium rates would be reflective of the claims experience.

The new measure was expected to pave the way for the de-tariffing of motor insurance sector in Malaysia by 2016, following which motor premium rates were expected to be further differentiated according to the risk profile of individual vehicles to ensure fairness to consumers.

The new framework would also encompass enhancing efficiency in claims settlement process.

Bank Negara said the objective was to ensure that all claims would be settled within six to 18 months, compared with the present average lead time of up to five years.

As part of an initiative to enhance the efficiency, Bank Negara said it would introduce a motor insurance claims kit to expedite notification of an accident and claims as well as the establishment of a nationwide 24-hour call centre to provide immediate roadside assistance to accident victims in the first quarter.

The central bank is also working on a review of legal fees in bodily injury cases, measures to incentivise early claims notification and leverage on hospital counters to facilitate claims notification as well as the development of guidelines on long-term nursing care.

These initiatives are targeted for completion by June.

Source : http://biz.thestar.com.my/news/story.asp?file=/2012/1/7/business/10219151&sec=business#13299210785551&if_height=384

Semak NCD secara percuma

Selain melalui SMS, anda boleh gunakan secara online. Perkhidmatan ini disediakan oleh MyCarInfo  untuk kemudahan pengguna menyemak status NCD terkini.

3 langkah mudah:-

1. Taipkan ISMNCD <ruang kosong> <No. Plat Kereta anda> <ruang kosong> <No IC anda>
2. SMS ke no 36600


** Untuk tentera / polis, masukkan format seperti berikut RF123456 di bahagian No. IC anda

Bagi SMS yang berjaya

1. Caj RM2.00 akan dikenakan pada servis ini.
2. Maklumat seperti berikut akan dipaparkan pada telefon anda.

 

Bagi SMS yang tidak berjaya

 

1. Caj RM0.30 akan dikenakan pada servis ini.
2. Maklumat seperti berikut akan dipaparkan pada telefon anda.
 

RM 0.30: NCD enquiry for <No. Plat Kereta anda> and <No. IC anda> does not match record in system. Kindly check info and resend/contact yr insurer directly. 

Government to implement GST after agreement with business community

JOHOR BAHARU, Feb 14 (Bernama) -- The government will only implement the Goods and Services Tax (GST) after it has received the agreement from the business community including the country's small and medium enterprises.

Until then, there is no specific date for the implementation of the GST, said Deputy Finance Minister Datuk Donald Lim Siang Chai.

"A round table conference will be held with the various chambers of commerce in the middle of this year to get feedback on the matter.

"If the majority of them agree, we will table the bill on the introduction of the GST for second reading in Parliament," he said.

Lim said this to reporters after officiating the Goods and Services Tax Conference 2012 jointly organised by Johor Corporation, Malaysian Association of Tax Accountants (MATA), Royal Malaysian Customs and Institut Pembangunan Pengurusan Johor Sdn Bhd, here Tuesday.

The first reading of the GST bill was done on Dec 16, 2009 at a rate of 4 per cent, however the chambers of commerce reported that 80 per cent of the business community are not ready for its implementation.

Lim also said the GST implementation system for consumers has been undertaken and is nearing completion while a detailed study at the government and companies' level will be done following that.

He said GST is a fairer system as the tax is imposed upon spending or when using services.

"The more we spend, the more tax we will have to pay," he said.

However, exemption from GST is allowed for necessity goods such as rice, flour and sugar.

GST, he added, will expose those involved in shadow economy and place them in the GST system.

Source : http://www.malaysiasme.com.my/index.php/SME-News/Government-to-implement-GST-after-agreement-with-business-community.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+malaysiasme+%28MALAYSIA+SME%E2%84%A2+Online%29

Etiqa raises premium target, eyes top spot

By Rupinder Singh
Published: 2011/10/21

KUALA LUMPUR: Etiqa Insurance and Takaful, the insurance arm of Maybank Group, wants to boost its topline written premium by 75 per cent by 2015, placing it as the number one player in the industry.

Its chief executive officer Hans De Cuyper said the company's gross premium currently stands at RM4.3 billion, putting it a strong number two in the market.

The insurer aims to grow its revenue with focus on employees' benefits and medical plans to become a significant contributor and strengthening its distribution channels.

"It is definitely an achievable target for us, considering our solid financial strength and as we increased our gross written premium from RM2.8 billion in 2006 to RM4.3 billion this year making us a strong number two in the market," he told reporters at a press briefing here yesterday.

Consistent with its growth objective, Etiqa foresees its assets under management increasing by 30 per cent in 2015 to RM30 billion from RM23 billion currently.

Both Etiqa Insurance Bhd (EIB) and Etiqa Takaful Bhd (ETB) are wholly-owned by Mayban Ageas Holdings Bhd, a joint venture between Maybank and Belgium-based Ageas Insurance International.

"Now that our merger master plan is completed, Etiqa can move forward to grow and become a solid third pillar for the Maybank Group by contributing more revenue and higher profitability," De Cuyper said.

Etiqa will leverage on the group's strength and build a wider distribution footprint for its products and services as well as to be the market leader in the industry.

It is also looking at alternative distribution channels and is actively looking at social media as a viable channel of growth.

Another area of opportunity for Etiqa is the soon-to-be-launched new private retirement scheme approved by the Securities Commission.

De Cuyper said Etiqa would "definitely" apply to participate in the new scheme the moment it is introduced.

It is learnt that Etiqa has been developing a new retirement product and plans to launch it in December this year.

Source :  http://www.btimes.com.my/Current_News/BTIMES/articles/ETIQA20/Article/

Etiqa Takaful to expand ops

By Rupinder Singh
Published: 2011/08/22

KUALA LUMPUR: Maybank's Islamic insurance arm, Etiqa Takaful Bhd, is on an acquisition trail to boost its business, both locally and abroad.

Etiqa Takaful commands about 45 per cent of the domestic takaful market and currently carries out business in Brunei, Singapore and Pakistan.

"That (merger and acquisition) is something consistently on the board," Etiqa Takaful's chief executive officer Shahril Azuar Jimin told Business Times in a recent interview.

After gaining almost half of the market share in the country, he said it was important for the operator to balance its business via acquisitions.

"We may look and see here in Malaysia and also at overseas markets. We certainly do not discount that," he said.

Etiqa Takaful has earmarked Indonesia as a likely destination, with tremendous potential for takaful products due to the large Muslim population there.

The Islamic insurer hopes to make its debut in Indonesia by the middle of 2013, leveraging on Maybank's presence in the republic.

Etiqa Takaful is a unit of Mayban Ageas Holdings Bhd (formerly Mayban Fortis Holdings), the insurance and takaful arm of Maybank Group. Ageas is Belgium's largest insurer and operates in 14 countries worldwide.

Maybank has a full fledged Islamic bank (PT Bank Maybank Indocorp (BMI) and a full fledged commercial bank (Bank Internasional Indonesia (BII)) in Indonesia.

Maybank has an ambitious plan of becoming a leading Islamic bank in Asean by 2015, in terms of reach.

Shahril, also Etiqa Ageas Holdings Bhd's chief sales officer, said having Maybank's backing was important in the company's business growth.

"The Maybank element is very important for us. It has made us what we are today. Maybank sees insurance and takaful as a pillar to help propel the group," he added.

The global takaful market presents a vast opportunity for Etiqa Takaful.

Though the takaful market is only 1 per cent of the global insurance market, its global market could reach US$25 billion (RM75 billion) at the end of 2015.

According to Ernst & Young, global takaful contributions are expected to touch US$12 billion at the end of this year from US$9.15 billion in 2010.

For the financial year ended June 30 2010, the top line premium written by Etiqa Ageas Holdings stood at RM4.5 billion while takaful contribution was recorded at RM1.95 billion, placing it as the second largest overall insurer in Malaysia and the number one takaful player in the country, with a pre-tax profit RM422 million.

Source : http://www.btimes.com.my/Current_News/BTIMES/articles/tikatiki/Article/

Shell falls into the red in fourth quarter
Saturday February 18, 2012


PETALING JAYA: Shell Refining Co (Federation of Malaya) Bhd fell into the red when it posted a net loss of RM99.49mil for the fourth quarter ended Dec 31, 2011 compared with a net profit of RM114.66mil a year ago due to weak refining margins.

For the full year, the company incurred a net loss of RM125.74mil compared with a profit of RM106.39mil a year ago. Its revenue for the quarter under review was higher at RM3.37bil compared with RM2.54bil previously.

Source : http://biz.thestar.com.my/news/story.asp?file=/2012/2/18/business/10762528&sec=business#13296399771381&if_height=613

Etiqa Takaful Bags Awards In Five Categories

KUALA LUMPUR, March 11 (Bernama) -- Etiqa Takaful Bhd bagged awards in five categories at the second Takaful Annual Dinner and Awards Night on Thursday.

It was named the Best Group Business Operator and the Best Bancatakaful Operator in two categories.

Adventurine Agency Sdn Bhd representing Etiqa Takaful won the Million Dollar Producer Award, while Zulkifli Othman, an Etiqa Takaful agent, took home the Million Dollar Agency Award.

It also won the Best Group Business Producer and Group Takaful Business for its partnership with Bank Rakyat.

-- BERNAMA

Source : http://finance.bernama.com/news.php?id=570273

PIDM Eyes Higher Premium Revenue This Year

KUALA LUMPUR, May 12 (Bernama) -- The Malaysian Deposit Insurance Corp (PIDM) aims to rake in RM243 million in premium revenue this year, of which RM82 million will be generated from the Takaful and Insurance Benefits Protection System (TIPS) launched last year.

PIDM's mandate had been expanded to administer the TIPS by Parliament, effective Dec 31, 2010.

Chief operating officer, Md Khairuddin Arsyad, said the remaining RM161 million was expected to come from Deposit Insurance System.

"PIDM is also expected to generate RM11 million in investment income this year," he told a media briefing on its 2010 annual report here Thursday.

In 2010, PIDM's revenue stood at RM115 million, with premium revenue amounted to RM105 million and investment income of RM9.3 million.

Total Deposit Insurance Funds (DIF) for the year amounted to RM431 million, made up of Conventional DIF of RM375 million and Islamic DIF of RM56 million.

Chief executive officer, Jean Pierre Sabourin, said for 2011-2013, PIDM would continue to focus on efforts to support its state of readiness, including building its capacity and capability in terms of operational readiness, improving operational effectiveness, promoting public awareness.

"This includes enhancing education initiatives, and putting in place the required infrastructure, systems and policies and resources to effectively administer TIPS," he said.

-- BERNAMA

Source : http://finance.bernama.com/news.php?id=586043

Indonesian Maids To Get Insurance Coverage

KUALA LUMPUR, June 21 (Bernama) -- Two companies, Etiqa Takaful Bhd and Takaful Ikhlas, will introduce an insurance scheme for Indonesian domestic maids soon with a premium payment for as low as RM70 a year.

With that amount, the maids will be eligible to receive compensation of up to RM40,000 due to accidents while at work.

They will also get to receive other benefits, including death benefit, payment for their hospital bills and medical cost under the scheme which will be implemented under the Domestic Helpers Affairs programme (Helpers).

Chairman of the Saba Islamic Domestic Help Advisory (SAIDHA), Sabariah Abdullah, said the insurance scheme received the cooperation of the Indonesian embassy and the Malaysian government, and supported by 33 non-governmental organisations (NGOs), including the Allied Coordinating Committee of Islamic NGOs (ACCIN), Malaysian Islamic Youth Movement (ABIM) and the Jemaah Islam Malaysia (JIM).

The premium for the insurance will be paid by the employers of the maids concerned, he told reporters after the launch of the Helper programme and the signing of a Memorandum of Understanding (MoU) between SAIDHA, the Indonesian Embassy and their strategic partners.

Sabariah said the insurance programme had been discussed at the ministry level and would be implemented soon.

The Helper programme also involve the participation of Maybank Bhd and CIMB Berhad to facilitate salary payment for the maids concerned, she added.

-- BERNAMA

Source : http://finance.bernama.com/news.php?id=595774

Rising Interest In Takaful Products Will Benefit Insurance Industry On Whole

By Mohd Khairi Idham Amran

KUALA LUMPUR, July 22 (Bernama) -- The rising interest in Takaful (Islamic insurance) products would benefit the insurance industry on the whole as it will garner more customers, especially in the lowly penetrated Malay market.

Chief Executive Officer of the Malaysian Insurance Institute (MII) Khadijah Abdullah said the Takaful business would complement the conventional insurance business, which has seen a slight slowdown in recent years.

Takaful will provide an option to the public, she said.

At the end of the day, people would go for either the conventional or Takaful business, as "we are all in the same industry," she told Bernama on the sideline of the Malaysia Million Dollar Roundtable Day 2011 (MDRT Day 2011) opening ceremony, here today.

The event, co-organised by the MII and MDRT Communication Committee, was officiated by MDRT's country chairman Mohamad Manmohan Abdullah.

Last year, the Takaful industry's assets in Malaysia was valued at RM14.7 billion, accounting for 8.7 per cent of the combined asset base of the conventional and Takaful industries.

Currently, there are 16,277 Takaful agents and 122,513 conventional insurance agents in Malaysia.

Meanwhile, the Malaysia MDRT Day 2011 was aimed to prepare local insurance agents to excel in their career by providing a platform for knowledge sharing between successful insurance agents and the participants.

Themed "Sparking Change", the conference, the first endeavour by the MII and MDRT Communication Committee, addressed critical issues and key challenges currently faced by insurance agents locally and globally.

The conference attracted 1,500 participants from the country's insurance industry.

-- BERNAMA

Source : http://finance.bernama.com/news.php?id=603019

Higher Motor Insurance Premiums To Cushion Any Economic Slowdown

KUALA LUMPUR, Sept 9 (Bernama) -- The hike in motor insurance premiums starting next year and prudent management by local insurance players will lessen any potential negative effects from an economic slowdown.

This is the first revision of the motor framework since 1978 and the actual quantum of increase is still under review.

Although, during times of crisis, the demand for certain insurance products with return guarantees tends to increase and claims, too, are likely to spike due to a higher incidence of fraud and thefts, Malaysian insurers have been prudent in managing their risks and claims, said OSK Research.

It also said Malaysia insurance companies have limited exposure to investments in equities and their investment income has not been significantly affected by market turbulence.

"Investment income is expected to be stable as most of these are in the fixed income and bond markets," it added.

The industry has also sufficient capital buffer, thanks to the risk-based capital (RBC) framework implemented in 2009 which enhances insurers' underwriting procedures, technical expertise in valuation of assets and liabilities, stress testing, and risk assessment.

"As such, policyholders are provided with greater protection since only insurance companies with strong capitalisation are able to continue operating," OSK Research said in a research note today.

As of the first quarter of 2011, the industry's capital adequacy ratio (CAR) stood at 242 per cent versus last year's 224.6 per cent, well above the minimum requirement of 130 per cent set by the RBC framework.

This, said OSK Research, clearly indicates that the local insurance industry had been fairly resilient, although the economic outlook was challenging.

Besides, the net effect of the 2008 crisis was quite small and the industry as a whole has been quite untouched, it said.

OSK Research said most insurance companies under its coverage had recorded positive net profit growth during the 2008 crisis, which further supported its view that the industry is relatively resilient.

Hence, OSK Research is maintaining its "neutral" call on the industry with its favorite insurance pick being Allianz, given the company's solid financial performance and potential merger and acquisition (M&A) excitement.

Kurnia Insurance is also poised to benefit from an impending M&A.

-- BERNAMA

Source : http://finance.bernama.com/news.php?id=612490

Number Of General Insurance Agents In Malaysia Expected To Grow By 26 Per Cent This Year

KUALA LUMPUR, Sept 13 (Bernama) -- The number of general insurance agents in Malaysia is expected to grow by 26 per cent this year, from more than 35,000 in the industry in 2010.

The Chief Executive Officer of the Malaysian Insurance Institute (MII), Khadijah Abdullah said this is based on the average trend of about 800 candidates per month, who sat for the insurance agents exam for the first seven months of this year.

"A career as a general insurance agent is still attractive and very much sought after," she said during the General Insurance Agents Convention 2011 here today.

She added that as the industry is growing, more measures are expected to be implemented in future to strengthen it.

Khadijah said Bank Negara has come out with new measures on motor insurance, aimed at ensuring consumers are advised accordingly on the appropriate market value of motor vehicles, when purchasing a comprehensive coverage for private cars effective Aug 1, 2011.

"This requires the agents to have an indepth knowledge and ability to advise their clients," she added.

-- BERNAMA

Source : http://finance.bernama.com/news.php?id=613074

Premium For General Insurance To Remain Stable

KUALA LUMPUR, Sept 13 (Bernama) -- The premium for general insurance in Malaysia, with the exception of motor and fire insurance, is expected to remain stable due to competition.

The Chief Executive Officer of the Malaysian Insurance Institute (MII), Khadijah Abdullah said premiums for motor and fire insurance, was controlled in Malaysia.

According to the General Insurance Association of Malaysia (PIAM), for 2010, the total general insurance gross premium was about RM13 billion, of which the agent's contribution was RM7.4 billion.

"As an industry as a whole, we are driving higher professionalism as well as quality standards and in this respect, all stakeholders have to work together to achieve aims and objective," she said during the General Insurance Agents Convention 2011 here today.

The event was attended by 500 participants comprising Malaysian Insurance agents.

Meanwhile, the Deputy minister of Human Resources, Senator Datuk Maznah Mazlan said in her speech that with a low insurance market penetration of only 42 per cent, there is yet a huge section to consider, particularly in the life insurance sector.

Her speech was read by the Secretary-General of the Ministry of Human Resources, Datuk Seri Zainal Rahim Seman.

In her speech, Maznah also said that the other form of social security protection applicable to foreign workers employed in Malaysia, was the payment of Workmen's Compensation administered by the Department of Labour, Ministry of Human Resource under the Workmen's Compensation Act 1952.

"This Act requires employers engaging foreign workers to insure their foreign workers with a workmen compensation insurance policy which may be acquired from any insurance company appointed by the Minister of Human Resource.

"At present, 30 insurance companies in Malaysia have been appointed to manage insurance coverage for the foreign workers," she added.

-- BERNAMA

Source : http://finance.bernama.com/news.php?id=613109

More Awareness Should Be Created For Captive Insurance

KUALA LUMPUR, Oct 17 (Bernama) -- Local companies should be more exposed to captive insurance which is at an infant stage in Malaysia, says Chief Executive Officer, Labuan International Business and Financial Centre (Labuan IBFC) Malaysia, David Kinloch.

He said currently there were about 14 companies which have established the captive insurance business in Labuan.

Captive insurance companies are insurance companies established with the specific objective of financing risks emanating from their parent group or groups, but they sometimes also insure risks of the group's customers as well.

Using a captive insurer is a risk management technique by which a business forms its own insurance company subsidiary to finance its retained losses in a formal structure.

"As far as we are concerned, the Malaysian market is huge and captive insurance only fits in when you are spending a lot of money on insurance products," he told reporters after a conference on captive insurance here Monday.

He also said the current global financial crisis was actually helping the growth of captive insurance.

"Our focus now is regional. We are actually taking business back from other jurisdiction, both in wealth management, banking and insurance, as the region becomes more sophisticated in its risk management and insurance buying," David said.

-- BERNAMA

Source : http://finance.bernama.com/news.php?id=620430

Health Ministry Mulls Creating Social Health Insurance Scheme

KUALA LUMPUR, Dec 8 (Bernama) -- The Health Ministry is mulling over plan to create a social health insurance scheme in a bid to ensure that private sector retirees will be insured against chronic diseases.

Its deputy minister, Datuk Rosnah Abdul Rashid Shirlin, said the scheme, which would be based on fair cost and risk sharing, would give a chance to all quarters to help each other, including those diagnosed with chronic diseases.

"Through the scheme, retirees will also be able to seek medical treatment at either private or government hospital or clinic," she said in reply to Senator Datuk Mohammed Najeeb Abdullah.

Mohammed Najeeb had wanted to know what was the government's plan in ensuring that private sector retirees would be covered by health insurance policies as those reaching the retirement age had higher risks of falling prey to chronic diseases which often required expensive treatment.

Rosnah said the premium for the proposed insurance scheme would involve contributions from the government, as well as both the employers and the employees.

However, she said the implementation of the scheme under the national health transformation system should be properly planned so that it would not burden the people.

-- BERNAMA

Source : http://finance.bernama.com/news.php?id=632823

MAC In Talks With Insurance Companies On HIV/AIDS Medical Expenses Coverage

KUALA LUMPUR, Dec 12 (Bernama) -- The Malaysian AIDS Council (MAC) is in talks with insurance companies, to insure HIV/AIDS medical expenses.

"The MAC spends RM30 million annually on the antiretroviral therapy (ART) tablet, a drug to suppress the HIV/AIDS virus," MAC president Tan Sri Mohd Zaman Khan Rahim Khan told a press conference at the Business Forum on HIV/AIDS Education and Prevention here today.

He also said the government had taken the lead in preventing the disease from spreading by financing the MAC to almost 100 per cent, with government grants received last year totaling up to RM10 million.

"The corporate sector must also keep on hiring HIV positive individuals, for them to afford the treatment, while educating their employees on the disease," he added.

The half-day forum was a joint effort between the Malaysian AIDS Foundation and the MAC. It was supported by the Mandarin Oriental Hotel Kuala Lumpur.

Held in conjunction with World AIDS Day 2011, the forum highlighted innovative prevention and education programmes run by businesses to address the HIV/AIDS crisis, and new strategies for the future.

- -BERNAMA

Source : http://finance.bernama.com/news.php?id=633499

Gradual Revision Of Motor Tariff Premium From Jan 16

KUALA LUMPUR, Jan 6 (Bernama) -- The gradual revision in the motor tariff premium rates will be implemented effective Jan 16, 2012, says Bank Negara Malaysia (BNM).

In a statement today, BNM said the revision would be the first to be undertaken after the non-revision for over 30 years.

The central bank said the premium adjustment was in small quantum and to be implemented over a period of four years.

For third-party cover, motorcycles of 110cc will experience a premium increase of between RM1-RM3.50 per year only (a maximum of 30 sen a month) over the next four years.

For a private car of 1,400cc, the premium adjustment will be between RM6-RM34 per year (a maximum of RM2.80 a month) over the same period.

For commercial vehicles such as outstation taxis and buses, the impact of the premium adjustment on the passengers will be minimal, at less than 10 sen per passenger per trip.

BNM gave assurance that the implication on the public and businesses will be marginal.

According to BNM, the adjustment in the motor tariff premium rates will be reviewed periodically to ensure that the adjusted premium rates continue to be reflective of the claims experience.

The revision of tariff is part of the New Motor Cover Framework in addressing the structural issues within the motor insurance and takaful sector.

The framework will pave the way for the detariffing of motor insurance premiums in 2016 in which premium rates will be further differentiated in accordance to the risk profile of individual vehicles and fairer to vehicle owners as those with good claims experience would enjoy much better premium rates than those with higher risk profile, it said.

BNM had previously said that the tariffs which have not been revised for more than 30 years had been a major source of difficulties faced by the public in recent years.

While the premiums had not been adjusted, there had been significant increases in the level of car ownership to about 19 million to date, accident rate and claims, it said.

BNM had said the framework would also involve immediate implementation of critical measures to enhance efficiency in claims settlement.

The enhancements will significantly reduce the average claims settlement period to six to 18 months from the present one to five years.

To ensure that the public is aware and able to benefit from the framework, particularly on the enhancements to the motor claims settlement process, BNM and the insurance industry will continue to provide information to the public on motor insurance issues through consumer awareness and outreach programmes currently in place.

BNM said those with queries relating to the framework may contact the central bank at TELELINK : 1-300-88-5465 or visit www.insuranceinfo.com.my.

Enquiries can also be forwarded to either Persatuan Insurans Am Malaysia (PIAM) or individual insurers, it said.

-- BERNAMA

Source : http://finance.bernama.com/news.php?id=638310

Uptake of group insurance due to poor social insurance coverage

PETALING JAYA: Employers are taking group insurance schemes as there is a need for greater protection and a more comprehensive coverage, says Malaysian Employers Federation (MEF) executive director Shamsuddin Bardan.

He told The Malay Mail the social insurance scheme by the Social Security Organisation (Socso) is limited in scope and hence many employers feel the inadequacies for their staff, therefore opting for group insurance plans.

“As we move towards a high income economy, provisions for social insurance coverage needs to be reviewed. When companies take on additional insurance, it is not cheap. Instead of employers incurring extra costs, the social insurance policies should be reevaluated to provide better coverage,” said Shamsuddin.

He said it should not be compulsory for employers to buy group insurance and also that Socso guidelines should be reassessed even when employers have taken group insurance policies.

“I believe lots of disputes can be avoided if a no-fault insurance system is practised by Socso, as adopted by most developed countries,” said Shamsuddin.

Source : http://www.mmail.com.my/content/69059-group-insurance-rise

Group insurance on the rise
Cover brings added benefits for employees who also feel they are being cared for
Ee Ann Nee
Monday, April 11th, 2011 11:56:00

PETALING JAYA: Companies not compelled to purchase group insurance are progressively taking up protection schemes from insurers to provide additional benefits for employees.

Former Life Insurance Association of Malaysia (LIAM) president Md Adnan Md Zain told The Malay Mail although the labour laws do not make it compulsory for companies to take up insurance for their staff, it would be ideal to make this compulsory.

“Such a move would provide financial assistance to a deceased’s family if death occurs while the employee is carrying out his duties. Moreover, group insurance is an added benefit of employment and will be deemed by employees that they are cared for.”

Adnan said group insurance is cost-effective, with lower administration costs and pooling of risks. Furthermore, it requires limited underwriting and is hassle-free with premiums paid by employers or are automatically deducted from the payroll.

However, Adnan cautioned the cost implications on employers as most employers, especially the established companies, were voluntarily providing cover.

“Group insurance is seeing an upward trend. The growing trend comes from an increasing awareness of companies offering better remuneration packages to employees as well as protecting their valuable human capital,” he said.

For LIAM members, the group insurance business saw a growth of 14.1 per cent in 2010 to a record RM2.36 billion in total premiums compared to RM2.07 billion in 2009.

Adnan said most companies spend on a combination of medical, personal accident and term-life insurance.

“To alleviate rising costs on medical claims, companies would certainly take up the medical portion with personal accident as the common choice. To accentuate their coverage, companies choose term-life as well to enhance coverage and provide higher compensation in the case of demise of an employee during their work tenure,” he said.

General Insurance Association of Malaysia (PIAM) executive director and secretary Lim Chia Fook told The Paper That Cares that providing any other benefits beyond requirements in the Employment Act is to the discretion of employers.

“However, a majority of employers do provide medical and health insurance (MHI) as it is the ‘right thing to do’ and it is part of the strategy to attract employees. It is also a norm for reputable companies to have medical benefits for their staff. No doubt employees see the need for MHI and many staff do rely on employers to provide medical care,” he said.

Lim said the common type of MHI coverage is hospitalisation and surgical insurance. He added not many companies provide outpatient and clinical coverage while dental and maternity coverage are fringe benefits based on the generosity of employers.

“But if a company has a large staff force, providing MHI including outpatient and clinical coverage can stabilise the company’s medical costs. Companies pay a fixed premium so they are able to budget against uncertainties and variables. The ‘risks’ are deemed taken care of by the insurance company,” he said.

Lim also said small and medium enterprises (SMEs) are gradually buying group insurance as part of their cost structuring. He said SMEs will slowly see that providing MHI for employees is a necessary risk transfer mechanism to stabilise costs.

“If a company does not insure, there will be tremendous risks involved,” he said.

Source : http://www.mmail.com.my/content/69059-group-insurance-rise

Penilaian Semula Hukum Pelaburan Aamanah Saham Nasional (ASN ) Dan Amanah Saham Bumiputera (ASB ) Dan Seumpamanya (Selangor)

Tarikh Keputusan: 12 Apr, 2011

Keputusan:

Setelah meneliti setiap pandangan ahli mesyuarat dan hujah-hujah yang dikemukakan, maka Mesyuarat Jawatankuasa Fatwa Negeri Selangor Kali Ke 2/2011 yang bersidang pada 12hb. April 2011M bersamaan 8 Jumadal Ula 1432H telah bersetuju memutuskan bahawa Pelaburan Amanah Saham Nasional (ASN), Amanah Saham Bumiputera (ASB) dan Seumpamanya adalah tidak halal kerana masih belum menepati hukum syarak dengan alasan seperti berikut:-

Skim Amanah Saham Nasional ( ASN ) dan Amanah Saham Bumiputera ( ASB ) secara jelas terlibat dalam aktiviti pelaburan yang bercampur-campur antara patuh syariah dan tidak patuh syariah sebahagian besarnya adalah daripada sektor kewangan konvensional. Ini berdasarkan hadis riwayat Jabir Al-Ja’fi daripada Ibnu Mas’ud:

ما اجتمع الحلال والحرام إلاغلب الحرام الحلال

Maksudnya : “ Tidak bercampur antara yang halal dan yang haram, melainkan mengalahkan yang haram atas yang halal . ”

Skim Amanah Saham Nasional ( ASN ) dan Amanah Saham Bumiputera ( ASB ) diklasifikasikan sebagai dana unit amanah tidak patuh syariah oleh Majlis Penasihat Syariah Suruhanjaya Sekuriti kerana terlibat dalam pelaburan tidak lulus syariah iaitu pelaburan dalam kaunter perbankan konvensional berteraskan faedah melalui Maybank dan pasaran wang.

Sumbangan kepada tidak patuh syariah adalah terbesar yang tidak bertepatan dengan kehendak syarak serta kadar yang berubah-ubah ini menyukarkan pelabur untuk membuat pembersihan terhadap hasil dividen.


Sumber:http://www.muftiselangor.gov.my/KoleksiDownload/16062011/ASNASB.pdf


Source : http://www.e-fatwa.gov.my/fatwa-negeri/penilaian-semula-hukum-pelaburan-aamanah-
saham-nasional-asn-dan-amanah-saham-bumiputera

Status Pampasan Polisi Insurans Konvensional Selepas Kematian Pembeli Polisi

Keputusan:

Muzakarah Jawatankuasa Fatwa Majlis Kebangsaan Bagi Hal Ehwal Ugama Islam Malaysia Kali Ke-94 yang bersidang pada 20 - 22 April 2011 telah membincangkan Status Pampasan Polisi Insurans Konvensional Selepas Kematian Pembeli Polisi. Muzakarah telah memutuskan seperti berikut:

Setelah meneliti keterangan, hujah-hujah dan pandangan yang dikemukakan, Muzakarah berpandangan bahawa insurans konvensional adalah suatu muamalah yang tidak patuh syariah kerana mempunyai elemen-elemen yang bercanggah dengan prinsip teras Islam.

Sehubungan itu, Muzakarah bersetuju memutuskan bahawa pampasan polisi insurans konvensional yang diterima oleh ahli waris adalah dikira sebagai harta tidak patuh syariah.

Dalam hal ini, jumlah bayaran pokok pembeli polisi ketika hayat sahaja dikategorikan sebagai harta peninggalan si mati yang perlu diagihkan secara sistem faraid. Manakala baki pampasan polisi insurans konvensional tersebut tidak boleh diwarisi oleh ahli waris secara sistem faraid serta wajib dilupuskan dengan diserahkan sama ada kepada pihak Baitulmal Majlis Agama Islam Negeri-Negeri atau didermakan untuk tujuan kebajikan termasuklah kepada golongan fakir dan miskin.

Jika terdapat ahli waris pembeli polisi, contohnya isteri atau anak-anak pembeli polisi dikategorikan sebagai golongan fakir dan miskin, maka hukumnya adalah harus bagi ahli waris tersebut untuk mengambil wang pampasan polisi insurans konvensional tersebut dengan jumlah sekadar keperluan sebagai fakir dan miskin setelah disahkan oleh pihak berkuasa atau Jawatankuasa Kariah kawasan berkenaan. Baki wang pampasan polisi tersebut perlulah dilupuskan mengikut cara yang telah dinyatakan dalam perkara (iii) di atas.

Source : http://www.e-fatwa.gov.my/fatwa-kebangsaan/status-pampasan-polisi-insurans-konvensional-selepas-kematian-pembeli-polisi

Islamic banking and finance to keep expanding next year

KUALA LUMPUR, Dec 29 (Bernama) -- Despite the global financial crisis, Islamic banking and finance is expected to continue expanding next year, with Malaysia-based players ready to lead the pack regionally and internationally.

The flaws in conventional finance have created great interest in the Islamic financial model, and this provides the basis for the industry to sustain a period of strong growth for the rest of this decade.

Dubai-based Noor Investment Group chief executive officer, Hussain Al Qemzi, said the high level of infrastructure spending in both Asean and the Middle East offers Islamic finance an opportunity to establish itself strongly in the global financial market, especially with the eurozone crisis that has certainly depressed the European banks' appetite for financing infrastructure projects.

"Islamic finance has not stopped growing despite all the crises. I think 2012 would be a much better year especially in the sukuk market, which is expected to rebound once the issues in the Middle East have settled down," he told Bernama in an interview.

Malaysia is already one of the largest sukuk (Islamic bond) issuance centres in the world and has established Islamic finance institutions well governed by trusted bodies like the International Islamic Liquidity Management Corporation.

Source : http://www.malaysiasme.com.my/index.php/SME-News/Islamic-banking-and-finance-to-keep-expanding-next-year.html