An insurance related article written by YS Chan, Sunday Star. Texts are reproduced here for your reading pleasure.
INSURANCE has been misunderstood for a long time and even today, many people still have the wrong notion. A lot of pain and frustration can be avoided if more people have a clearer understanding of it.
To begin with, insurance does not offer any protection although the word is popularly used to sell insurance. It can only pay compensation to the unfortunate insured party. It works by getting a larger number of people to participate in a huge fund managed by an insurance company (the contribution of the many to pay for the losses of a few).
For most of the contributors, there is no monetary return as they fortunate not to suffer any harm to themselves or their properties.
For the minority, who are not so lucky, the compensation paid out to them is much more than the premiums they paid. It is an "odd" case of the winners losing their money and the losers gaining it.
However compensation can never replace what was lost and very often the claimants would receive less than they hoped for.
The Insured must always bear in mind that it is not practical for Insurers to provide full and total coverage to keep the premiums at an affordable level.
Life insurance policies with just the basic cover popularly known as term assurance have proven to be unpopular other than for mortgage cover. As such, the majority of life insurance policies are those with loaded premium, which allows insurance companies to invest and eventually return to the Insured, more than what they have paid.
It is important to note that insurance companies must remain profitable otherwise their operation is not sustainable. The public should not be lured by low premiums or high returns as everything would be lost should an insurance company collapse.
From time to time, we come across complaints by senior citizens that they are not eligible to buy insurance and have their life savings wiped out by expensive medical care.
We must realise that life and medical insurance can only be bought with our health and paid by our wealth.
For those who continue to scorn at the quality of our public hospitals or find queuing unbearable, get your insurance cover now before it gets too expensive or beyond reach.
However, having an insurance company to underwrite your risks does not necessarily mean there are no further monetary risks to worry about.
It would be wise to read and adhere to the fine prints as the Insured may not be fully covered for all types of contingencies.
The best form of protection is to be careful, lead a healthy lifestyle and contribute to make this world a safer place.
Thursday, December 23, 2010
Wednesday, December 22, 2010
Tips No. 3 on General Insurance Claims Handling
Tips No.3: Loss Notification
It is a condition precedent to liability that any claim for loss or damage should be notified by the Insured to the Insurer, in writing, immediately.
However, there are many cases of such claims being rejected outright by the Insurer as the loss or damage does not come within the scope of the cover or there are breaches of Policy Conditions. The Insurer will want to double check the followings are in order before registering the claim.
THAT:
1) the loss or damage is an insured peril under the policy
2) the subject matter damaged is the one specified under the Policy
3) the claimant is the one insured and named in the policy
4) the policy is still in force
5) the loss or damaged happened within the territorial limit
6) the Premium has been paid
7) All other Policy Conditions are fully complied with
Upon satisfying themselves with these conditions, the Insurer will sent out the claim form to the Insured for completion. Insured is required to return the Claim form to the Insurer together with all claims supporting documents, within 30 days from the loss notification date.
Whether or not a Loss Adjuster is appointed to investigte the loss or damage depends on the quantum of loss, fraud or complexicity of the claim etc. If the Loss Adjuster is involved, the Insured is required under the policy condition aka Rights of Insurers to fully co-operate with the Loss Adjuster to expedite the claim.
However, in many known situations, the Insured could not produce the supporting documents or proof of purchases to justify the loss or damage within the 30 days period. In the event a delay is anticipated, the Insured can write to the Insurer officially, with valid reasons, to seek an extension of time to procure the required documents.
Notwithstanding the condition, it is the normal market practice for the Insurer to write to and to remind the Insured of the outstanding documents in the 12 months that followed. But if the Insured still failed to respond to the Insurer inspite of repeated reminders to do so, then the Insurer can exercise their rights under the "Time Limitation Condition" to close the file without further notice to the Insured. This time limitation condition is not applicable to claims involving litigation procedures.
TIPS NO 4 WHY THE NEED FOR CLAIMS SUPPORTING DOCUMENTS
It is a condition precedent to liability that any claim for loss or damage should be notified by the Insured to the Insurer, in writing, immediately.
However, there are many cases of such claims being rejected outright by the Insurer as the loss or damage does not come within the scope of the cover or there are breaches of Policy Conditions. The Insurer will want to double check the followings are in order before registering the claim.
THAT:
1) the loss or damage is an insured peril under the policy
2) the subject matter damaged is the one specified under the Policy
3) the claimant is the one insured and named in the policy
4) the policy is still in force
5) the loss or damaged happened within the territorial limit
6) the Premium has been paid
7) All other Policy Conditions are fully complied with
Upon satisfying themselves with these conditions, the Insurer will sent out the claim form to the Insured for completion. Insured is required to return the Claim form to the Insurer together with all claims supporting documents, within 30 days from the loss notification date.
Whether or not a Loss Adjuster is appointed to investigte the loss or damage depends on the quantum of loss, fraud or complexicity of the claim etc. If the Loss Adjuster is involved, the Insured is required under the policy condition aka Rights of Insurers to fully co-operate with the Loss Adjuster to expedite the claim.
However, in many known situations, the Insured could not produce the supporting documents or proof of purchases to justify the loss or damage within the 30 days period. In the event a delay is anticipated, the Insured can write to the Insurer officially, with valid reasons, to seek an extension of time to procure the required documents.
Notwithstanding the condition, it is the normal market practice for the Insurer to write to and to remind the Insured of the outstanding documents in the 12 months that followed. But if the Insured still failed to respond to the Insurer inspite of repeated reminders to do so, then the Insurer can exercise their rights under the "Time Limitation Condition" to close the file without further notice to the Insured. This time limitation condition is not applicable to claims involving litigation procedures.
TIPS NO 4 WHY THE NEED FOR CLAIMS SUPPORTING DOCUMENTS
Sunday, December 19, 2010
Tips No. 2 on General Insurance Claims Handling
REFERRING YOUR CASE TO FINANCIAL MEDIATION BUREAU (FMB)
INTRODUCTION
The FMB is an independent body that prvides you with a fast, convenient and efficient avenue to refer your compalints, disputes or claims for resolution as an alternative to the courts and the services of the FMB is offered free of charge.
WHEN TO REFER YOUR CASE TO THE FMB
Before the FMB can take your case, you should first lodge a complaint with your Insurer and try to resolve your complaint, dispute or claim with them.
If your compliant, dispute or claim cannot be resolved or you are not satisfaied with the final response given to you by your Insurer, you can refer your case to FMB.
You need to submit your case to FMB within 6 months of receiving a final decision from your Insurer.
HOW TO REFER YOUR CASE TO THE FMB
You can go personally to the FMB or write to the FMB by stating briefly the nature of your complaint, dispute or claim together with a copy of the relevant correspondence from your Insurer, including a copy of the letter conveying the final decision.
You also need to complete a standard form prepared by the FMB that will authorise your Insurer to disclose any confidential financial information related to the case to FMB.
SCOPE OF SERVICES
All complaints, disputes and claims other than those listed in the exclusions of the policy. This will include:
You can choose to accept or reject the decision of the FMB. If you do not accept, the decision is deemed cancelled and you are free to take any other steps in respect of the compliant, dispute or claim, including legal proceeding. However if you do accept the FMB's decision, you mat lose your right to proceed with the legal action against the Insurer concerned.
The mediation process are deemed to be a "without prejudice proceeding". The decision of the FMB or any part thereof relating to the findings or facts and expressions of views or opinion shall not be discussed in any subsequent court proceedings or arbitration
FURTHER INFORMATION
If you need more information, please contact the FMB at the followings address:
The Financial Mediation Bureau
Level 25,
No.4, Jalan Sultan Sulaiman,
5000, Kuala Lumpur
Telephone: 03-2272 2811
Fax: 03-2274 5752
Website: http://www.fmb.org.my/
INTRODUCTION
The FMB is an independent body that prvides you with a fast, convenient and efficient avenue to refer your compalints, disputes or claims for resolution as an alternative to the courts and the services of the FMB is offered free of charge.
WHEN TO REFER YOUR CASE TO THE FMB
Before the FMB can take your case, you should first lodge a complaint with your Insurer and try to resolve your complaint, dispute or claim with them.
If your compliant, dispute or claim cannot be resolved or you are not satisfaied with the final response given to you by your Insurer, you can refer your case to FMB.
You need to submit your case to FMB within 6 months of receiving a final decision from your Insurer.
HOW TO REFER YOUR CASE TO THE FMB
You can go personally to the FMB or write to the FMB by stating briefly the nature of your complaint, dispute or claim together with a copy of the relevant correspondence from your Insurer, including a copy of the letter conveying the final decision.
You also need to complete a standard form prepared by the FMB that will authorise your Insurer to disclose any confidential financial information related to the case to FMB.
SCOPE OF SERVICES
All complaints, disputes and claims other than those listed in the exclusions of the policy. This will include:
- All Life Insurance/ Family Takaful Claims
- All General Insurance/ General Takaful Claims
- Other Banking and Financial Related
- Motor and Fire Insurance/takaful up to RM200,000.00
- Third Party Property Damage Claims up to RM5,000.00
- Others up to RM100,000.00
You can choose to accept or reject the decision of the FMB. If you do not accept, the decision is deemed cancelled and you are free to take any other steps in respect of the compliant, dispute or claim, including legal proceeding. However if you do accept the FMB's decision, you mat lose your right to proceed with the legal action against the Insurer concerned.
The mediation process are deemed to be a "without prejudice proceeding". The decision of the FMB or any part thereof relating to the findings or facts and expressions of views or opinion shall not be discussed in any subsequent court proceedings or arbitration
FURTHER INFORMATION
If you need more information, please contact the FMB at the followings address:
The Financial Mediation Bureau
Level 25,
No.4, Jalan Sultan Sulaiman,
5000, Kuala Lumpur
Telephone: 03-2272 2811
Fax: 03-2274 5752
Website: http://www.fmb.org.my/
Wednesday, December 15, 2010
Tips No 1: General Insurance Claims Handling
Problems making an insurance claim due to the lack of understanding of the subject.
Find out some useful tips on how to handle a claim effectively from a layman's point of view.
TIP No.1
ONUS OF PROOF OF LOSS
On the part of the Insured:
In order to claim, Insured must proved that the loss or damage was caused by an insured peril stated in the Operative Clause of the Policy
On the part of the Insurer:
To reject the claim, the Insurer need to prove any one or combination of the followings:
Loss or damage was caused by an excluded peril
Loss or damage was caused by an uninsured peril
Breached of one of the many Policy Conditions
Breached of Warranty attaching to the Policy
Non disclosure or concealment of Material Facts
Insurer will state the reason for the rejection in a formal reply to the Insured. As required by BNM, Insurer is compelled to disclose, in the letter, the name, address, email and telephone of the Financial Mediation Bureau (FMB) or BNM Complain Bureau for the Insured to lodge his/her complaint if he/she is not satisfied with the decision of the Insurer to reject the said claim.
Before the Insured seeks redress from FMB/BNM, it is advisable that he/she should file an appeal with the Insurer. If the Insurer still maintained their stand and turned down the appeal, the Insured can then direct the case to FMB for a decision to be made. Any appeal should be initiated, within 3 months from the date of rejection as allowed under the terms and conditions of the Policy. If the decision of the FMB does not favor the Insured, he/she can take the case to court. Insurer will defend their "no liability" stand with all the evidence they possessed. The Final verdict lies in the Court of Law.
There was a case involving a fire claim submitted by Asean Paper Mill in Butterworth many years ago, where Insurer initially rejected the claim on the ground of arson. Insured appealed against the decision but was shot down by the Insurer. No other alternative, the Insured took the case to court and after slightly more than 10 years of court battles, the Insurer was found to be liable and had to pay the claim in the region of RM20 million with cost and interests.
FMB was not involved in this case as they can only mediate for claims not exceeding RM200,000 (for motor and fire losses)
Tips No 2: Referring your case to FMB
Find out some useful tips on how to handle a claim effectively from a layman's point of view.
TIP No.1
ONUS OF PROOF OF LOSS
On the part of the Insured:
In order to claim, Insured must proved that the loss or damage was caused by an insured peril stated in the Operative Clause of the Policy
On the part of the Insurer:
To reject the claim, the Insurer need to prove any one or combination of the followings:
Loss or damage was caused by an excluded peril
Loss or damage was caused by an uninsured peril
Breached of one of the many Policy Conditions
Breached of Warranty attaching to the Policy
Non disclosure or concealment of Material Facts
Insurer will state the reason for the rejection in a formal reply to the Insured. As required by BNM, Insurer is compelled to disclose, in the letter, the name, address, email and telephone of the Financial Mediation Bureau (FMB) or BNM Complain Bureau for the Insured to lodge his/her complaint if he/she is not satisfied with the decision of the Insurer to reject the said claim.
Before the Insured seeks redress from FMB/BNM, it is advisable that he/she should file an appeal with the Insurer. If the Insurer still maintained their stand and turned down the appeal, the Insured can then direct the case to FMB for a decision to be made. Any appeal should be initiated, within 3 months from the date of rejection as allowed under the terms and conditions of the Policy. If the decision of the FMB does not favor the Insured, he/she can take the case to court. Insurer will defend their "no liability" stand with all the evidence they possessed. The Final verdict lies in the Court of Law.
There was a case involving a fire claim submitted by Asean Paper Mill in Butterworth many years ago, where Insurer initially rejected the claim on the ground of arson. Insured appealed against the decision but was shot down by the Insurer. No other alternative, the Insured took the case to court and after slightly more than 10 years of court battles, the Insurer was found to be liable and had to pay the claim in the region of RM20 million with cost and interests.
FMB was not involved in this case as they can only mediate for claims not exceeding RM200,000 (for motor and fire losses)
Tips No 2: Referring your case to FMB
Wednesday, December 1, 2010
Fire Insurance Design for SME
Just concluded a training session on Fire Insurance Design, Program Writing and Presentation skills.
Topics presented and discussed include :
1) An overview of the SMEs in Malaysia and the potential businesses that one can target for growth in terms of insurance premium
2) Analysis of the Risk using the various risk identification tools and loss control measures that can be undertaken by customers to minimize a loss from happening
3) Insurance Needs Analsyis and the appropriate protection and extensions required by the customers
4) Sourcing for competitive rate from the Insurer without compromising on the benefits
5) Writing out a comprehensive insurance program that entails the details of insured and the contract
6) Formal Presentation of the Insurance Program to Customers and Closing Techniques
This module can be customised to the Insurers and the Agents training needs. Please post your enquiries and I will response immediately.
Topics presented and discussed include :
1) An overview of the SMEs in Malaysia and the potential businesses that one can target for growth in terms of insurance premium
2) Analysis of the Risk using the various risk identification tools and loss control measures that can be undertaken by customers to minimize a loss from happening
3) Insurance Needs Analsyis and the appropriate protection and extensions required by the customers
4) Sourcing for competitive rate from the Insurer without compromising on the benefits
5) Writing out a comprehensive insurance program that entails the details of insured and the contract
6) Formal Presentation of the Insurance Program to Customers and Closing Techniques
This module can be customised to the Insurers and the Agents training needs. Please post your enquiries and I will response immediately.
Sunday, November 28, 2010
Medical Insurance Coverage for Foreign Workers
Agents...take note. More business coming your way with the compulsory medical coverage to cover foreign workers.
According to the announcement by the Health Minister, Datuk Seri Liow Tiong Lai, all foreign workers employed in Malaysia must be covered by medical insurance from January 1, 2011. Each worker must have medical insurance coverage with an annual premium of RM120.00.
Liow said the move was to ensure foreign workers' medical bills were taken care of and would not burden the Government.
Sundat Star 28 November 2010
According to the announcement by the Health Minister, Datuk Seri Liow Tiong Lai, all foreign workers employed in Malaysia must be covered by medical insurance from January 1, 2011. Each worker must have medical insurance coverage with an annual premium of RM120.00.
Liow said the move was to ensure foreign workers' medical bills were taken care of and would not burden the Government.
Sundat Star 28 November 2010
Tuesday, November 16, 2010
Asia: Bancassurance to grow in importance as distribution channel
Asia:
Bancassurance is growing in many Asian markets, boosted by deregulation of the banking sector and
insurance companies intending to optimise distribution via banks, according to a report by the US-headquartered research and advisory firm, Celent, titled "Bancassurance in the Asia-Pacific Region: Replacing the Agency Distribution Model".
Is this situation holds true in Malaysia ?? I believe so with so many local/foreign banks offering bancassurance products to its high customers base in Malaysia.
Can you find any disadvantages with bancassurance?
Australia: AMP makes renewed offer for AXA Asia Pacific
AMP, Australia's second biggest asset manager, has launched a new offer for AXA Asia Pacific, valuing the
latter at more than A$13 billion (US$12.8 billion), which is about 20% more than an initial offer that was rejected a year ago. If the new offer is accepted, AMP will hold the number one market position for risk insurance, retail superannuation and retirement income in Australia. In New Zealand, AMP will be No. 1 in the growing corporate superannuation market.
Taiwan: Regulator eases infrastructure investment rules for insurers
Taiwan's Financial Supervisory Commission has amended insurance regulations to allow insurers to increase their investment in companies involved in public infrastructure projects, reports Taiwan Today.
China: Shipping-related insurance business booms in Shanghai
Shanghai's shipping and cargo insurance business has grown far ahead of the national average as the city
taps its potential as a shipping hub, according to the Shanghai-based Eastday information portal citing the city's insurance regulator.
Asia Insurance Review 16/11/2010
Bancassurance is growing in many Asian markets, boosted by deregulation of the banking sector and
insurance companies intending to optimise distribution via banks, according to a report by the US-headquartered research and advisory firm, Celent, titled "Bancassurance in the Asia-Pacific Region: Replacing the Agency Distribution Model".
Is this situation holds true in Malaysia ?? I believe so with so many local/foreign banks offering bancassurance products to its high customers base in Malaysia.
Can you find any disadvantages with bancassurance?
Australia: AMP makes renewed offer for AXA Asia Pacific
AMP, Australia's second biggest asset manager, has launched a new offer for AXA Asia Pacific, valuing the
latter at more than A$13 billion (US$12.8 billion), which is about 20% more than an initial offer that was rejected a year ago. If the new offer is accepted, AMP will hold the number one market position for risk insurance, retail superannuation and retirement income in Australia. In New Zealand, AMP will be No. 1 in the growing corporate superannuation market.
Taiwan: Regulator eases infrastructure investment rules for insurers
Taiwan's Financial Supervisory Commission has amended insurance regulations to allow insurers to increase their investment in companies involved in public infrastructure projects, reports Taiwan Today.
China: Shipping-related insurance business booms in Shanghai
Shanghai's shipping and cargo insurance business has grown far ahead of the national average as the city
taps its potential as a shipping hub, according to the Shanghai-based Eastday information portal citing the city's insurance regulator.
Asia Insurance Review 16/11/2010
Wednesday, November 10, 2010
Malaysia: Auto repair body and insurers collaborate on grading database
1. The Federation of Automobile Workshop Owners Association Malaysia, (FAWOAM) is expected to implement a new grading system for 500 motor workshops nationwide by January, in collaboration with the new General Insurance Association of Malaysia (PIAM) authorised repairer scheme, according to the Daily Express newspaper of East Malaysia. For a start, the system will cover the top six selling marques in the
country - Proton, Perodua, Honda, Nissan, Kia and Toyota - which make up 85% of cars sold in Malaysia.
Other Asian News
2. China: Banking regulator issues new rules for banks selling insurance
China's banking regulator, the China Banking Regulatory Commission (CBRC), has unveiled new rules governing the sale of insurance by banks as lenders get set to diversify into the area under recently relaxed rules, reports Reuters.
3. The Philippines: General insurers lobby to update insurance law
The Philippines' insurance trade body is calling for the country's 36-year-old Insurance Code to be updated so as to help improve the performance of the industry, reports The Philippine Star. Two critical issues for immediate attention are the Insurance Commission (IC), which supervises the sector, and taxes.
4. Asia: Increasing claims ratios reinforce need for loss adjusters
Considering sound and suitable claims handling, insurers and reinsurers need to rely on independent, technical and transparent loss adjusters, as Asia is increasingly seeing higher claims ratios based on equipment age and internationalisation, according to speakers at The International Federation of Adjusting Associations (IFAA) 2nd Regional Claims Conference, themed: The Claim Life-Cycle, held yesterday in Singapore.
5. India: Regulator bars credit insurance business by insurers
India's non-life insurance industry has been barred from selling all forms of credit insurance, in the wake of massive claims faced by state-owned insurer, Oriental Insurance, on a cover granted to Paramount Airways, reports The Economic Times. The directive order applies to all insurance companies, except the state-owned export credit and guarantees corporation.
6. Asia: Countries in region learn from pension experience of others
Asian countries are "leapfrogging" stages of pension scheme development experienced by countries with more mature systems, such as Australia. The Australian system took 40 years to evolve, but the Asian ones will get to the same point within 15 to 20 years, reports the Financial Times citing Mr Peter Promnitz, Head of Asia Pacific for Mercer.
Asia Insurance Review 10/11/2010
country - Proton, Perodua, Honda, Nissan, Kia and Toyota - which make up 85% of cars sold in Malaysia.
Other Asian News
2. China: Banking regulator issues new rules for banks selling insurance
China's banking regulator, the China Banking Regulatory Commission (CBRC), has unveiled new rules governing the sale of insurance by banks as lenders get set to diversify into the area under recently relaxed rules, reports Reuters.
3. The Philippines: General insurers lobby to update insurance law
The Philippines' insurance trade body is calling for the country's 36-year-old Insurance Code to be updated so as to help improve the performance of the industry, reports The Philippine Star. Two critical issues for immediate attention are the Insurance Commission (IC), which supervises the sector, and taxes.
4. Asia: Increasing claims ratios reinforce need for loss adjusters
Considering sound and suitable claims handling, insurers and reinsurers need to rely on independent, technical and transparent loss adjusters, as Asia is increasingly seeing higher claims ratios based on equipment age and internationalisation, according to speakers at The International Federation of Adjusting Associations (IFAA) 2nd Regional Claims Conference, themed: The Claim Life-Cycle, held yesterday in Singapore.
5. India: Regulator bars credit insurance business by insurers
India's non-life insurance industry has been barred from selling all forms of credit insurance, in the wake of massive claims faced by state-owned insurer, Oriental Insurance, on a cover granted to Paramount Airways, reports The Economic Times. The directive order applies to all insurance companies, except the state-owned export credit and guarantees corporation.
6. Asia: Countries in region learn from pension experience of others
Asian countries are "leapfrogging" stages of pension scheme development experienced by countries with more mature systems, such as Australia. The Australian system took 40 years to evolve, but the Asian ones will get to the same point within 15 to 20 years, reports the Financial Times citing Mr Peter Promnitz, Head of Asia Pacific for Mercer.
Asia Insurance Review 10/11/2010
Tuesday, November 2, 2010
Global: 2010 'exceptional year' for weather disasters
1. Global: 2010 has so far been an "exceptional" year for weather-related disasters, that included catastrophic floods in Pakistan, wildfires in Russia, and hurricanes in Mexico, reports Agence France
Presse citing an expert at global reinsurance giant Munich Re.
2. Indonesia: Govt planning disaster insurance scheme
The Indonesian government is planning to set up a disaster insurance scheme to cover financial losses and provide for emergency needs in the face of a string of tumultuous natural disasters that have struck the country in recent years.
3. India: Stable profitable growth forecast for life sector
The Indian life insurance industry is at the threshold of having stable profitable growth, according to a study by the Confederation of Indian Industry (CII) and international accounting firm, Ernst & Young (E&Y).
4. Hong Kong: AIA shares make strong debut
AIA's share price soared by 17% on the insurer's debut last Friday on the Hong Kong stock exchange, ending the day at HK$23.05 (US$2.97), compared to the IPO price of HK$19.68. The intra-day high was
HK$23.15.
5. China: Robust growth for insurance industry for Jan-Sep
China's insurance industry collected premiums of 1,132.43 billion yuan (US$169.75 billion) for the first nine
months of this year, up 32% year on year, according to the latest data from the China Insurance Regulatory Commission (CIRC).
Asia Insurance Review 1/11/2010
Presse citing an expert at global reinsurance giant Munich Re.
2. Indonesia: Govt planning disaster insurance scheme
The Indonesian government is planning to set up a disaster insurance scheme to cover financial losses and provide for emergency needs in the face of a string of tumultuous natural disasters that have struck the country in recent years.
3. India: Stable profitable growth forecast for life sector
The Indian life insurance industry is at the threshold of having stable profitable growth, according to a study by the Confederation of Indian Industry (CII) and international accounting firm, Ernst & Young (E&Y).
4. Hong Kong: AIA shares make strong debut
AIA's share price soared by 17% on the insurer's debut last Friday on the Hong Kong stock exchange, ending the day at HK$23.05 (US$2.97), compared to the IPO price of HK$19.68. The intra-day high was
HK$23.15.
5. China: Robust growth for insurance industry for Jan-Sep
China's insurance industry collected premiums of 1,132.43 billion yuan (US$169.75 billion) for the first nine
months of this year, up 32% year on year, according to the latest data from the China Insurance Regulatory Commission (CIRC).
Asia Insurance Review 1/11/2010
Thursday, October 28, 2010
Malaysia: Govt acts to make private health insurance compulsory for foreign workers
Malaysia's worker's compensation regulations for foreign workers will be tabled for amendment next year, under which worker's compensation insurance to be paid for by employers will cover occupational-related diseases and accidents,whereas medical insurance for non-occupational diseases and injuries will be paid
for by the foreign worker, reports the Bernama news agency.
Other Asian News
1. Indonesia: Insured losses estimated to be low in 25 Oct earthquake
US-headquartered catastrophe modelling firm, AIR Worldwide, has assessed that a powerful magnitude 7.7 earthquake which struck off the Mentawai islands in Indonesia on Monday night will not result in significant insured losses. The company, in a statement, cites the low earthquake insurance penetration in the area as a reason for the low insured losses.
2. Australians willing to pay less than US$300 for financial advice
The average Australian believes financial advice should cost just A$300 (US$292) upfront -almost 10 times less what planners say is the break-even cost of providing full advice, reports the Financial Standard citing research from Investment Trends' Planner Business Report.
3. East Asia: ACE buys New York Life's HK, South Korean units for US$425 mln
ACE has greed to buy New York Life Insurance's Hong Kong and South Korean life operations for about US$425 million in cash, the Swiss-incorporated property and casualty insurer says in a statement.
4. China: Ping An eyeing more investments in corporate bonds
Ping An Insurance (Group) Co, China's second largest insurer, will raise the proportion of corporate issues in its holdings, reports Bloomberg citing the insurer's Deputy Chief Investment Officer, Mr Timothy Chan.
Asia Insurance Review 28/10/2010
for by the foreign worker, reports the Bernama news agency.
Other Asian News
1. Indonesia: Insured losses estimated to be low in 25 Oct earthquake
US-headquartered catastrophe modelling firm, AIR Worldwide, has assessed that a powerful magnitude 7.7 earthquake which struck off the Mentawai islands in Indonesia on Monday night will not result in significant insured losses. The company, in a statement, cites the low earthquake insurance penetration in the area as a reason for the low insured losses.
2. Australians willing to pay less than US$300 for financial advice
The average Australian believes financial advice should cost just A$300 (US$292) upfront -almost 10 times less what planners say is the break-even cost of providing full advice, reports the Financial Standard citing research from Investment Trends' Planner Business Report.
3. East Asia: ACE buys New York Life's HK, South Korean units for US$425 mln
ACE has greed to buy New York Life Insurance's Hong Kong and South Korean life operations for about US$425 million in cash, the Swiss-incorporated property and casualty insurer says in a statement.
4. China: Ping An eyeing more investments in corporate bonds
Ping An Insurance (Group) Co, China's second largest insurer, will raise the proportion of corporate issues in its holdings, reports Bloomberg citing the insurer's Deputy Chief Investment Officer, Mr Timothy Chan.
Asia Insurance Review 28/10/2010
Wednesday, October 27, 2010
Munich Re expects prices to be stable for Jan renewals
Munich Re, the world's biggest reinsurer, is expecting prices for property and casualty coverage to
remain unchanged in the January round of renewals, reports Bloomberg.
Other News:
1. India: Stock mart regulator approves disclosure standards for life insurers
India's capital market regulator, the Securities and Exchange Board of India (Sebi) has approved long-awaited disclosure standards for the life insurance companies which aim to launch an initial public offer.
2. Asia: Calls to better manage globalisation risks
With heightened risks such as global health pandemics, food and water scarcity, and unconventional threats such as terrorism, there are calls for stronger forward planning to tackle such globalised risks, which are areas where insurance players can help, says a Singapore government minister.
3. China: Interest rate hike to boost insurers' bottomline
The 25-basis-point increase in China's one-year deposit and lending rates earlier this month, coming on top of loosened investment rules for insurers announced in August, bodes well for the bottomline of insurance companies in the coming quarters, reports Reuters.
4. Singapore: Health minister looking at ways to strengthen health insurance further
Singapore's Health Minister, Mr Khaw Boon Wan, says that he has held an informal lunch dialogue with all health insurers to review the state of the Republic's healthcare umbrellas.
Asia Insurance Review 27/10/2010
remain unchanged in the January round of renewals, reports Bloomberg.
Other News:
1. India: Stock mart regulator approves disclosure standards for life insurers
India's capital market regulator, the Securities and Exchange Board of India (Sebi) has approved long-awaited disclosure standards for the life insurance companies which aim to launch an initial public offer.
2. Asia: Calls to better manage globalisation risks
With heightened risks such as global health pandemics, food and water scarcity, and unconventional threats such as terrorism, there are calls for stronger forward planning to tackle such globalised risks, which are areas where insurance players can help, says a Singapore government minister.
3. China: Interest rate hike to boost insurers' bottomline
The 25-basis-point increase in China's one-year deposit and lending rates earlier this month, coming on top of loosened investment rules for insurers announced in August, bodes well for the bottomline of insurance companies in the coming quarters, reports Reuters.
4. Singapore: Health minister looking at ways to strengthen health insurance further
Singapore's Health Minister, Mr Khaw Boon Wan, says that he has held an informal lunch dialogue with all health insurers to review the state of the Republic's healthcare umbrellas.
Asia Insurance Review 27/10/2010
Tariff Rated Fire Insurance Premium - Can it be reduced further?
We know the fact that the Fire Insurance Premium is tariff rated and governed by the Rules of the Revised Fire Tariff (RFT)
A breach of the RFT can land the Insurer in hot soup with the authority where a fine or disciplinary action can be taken against the agent and/ or the principal Insurer involved.
Everything else being equal amongst the Insurers, can the premium be reduced further without breaching the rules of the RFT?
Why not? The question is HOW to do it.
A breach of the RFT can land the Insurer in hot soup with the authority where a fine or disciplinary action can be taken against the agent and/ or the principal Insurer involved.
Everything else being equal amongst the Insurers, can the premium be reduced further without breaching the rules of the RFT?
Why not? The question is HOW to do it.
Tuesday, October 26, 2010
Furniture and other Timber Related Risks
From the agents feedbacks, majority if not all the Insurers in town are reluctant to underwrite the fire risk involving furniture manufacturing plant and other timber related risks. Retail businesses such as furniture shops and furniture show rooms are not spared from exclusion either.
There are big businesses and big premiums from such risks floating in the market but unfortunately there are no takers with Insurers fearing that a major claim could wipe off their underwriting profits?
Any solutions?
If there is a will, there is a way......question is HOW to do it?
There are big businesses and big premiums from such risks floating in the market but unfortunately there are no takers with Insurers fearing that a major claim could wipe off their underwriting profits?
Any solutions?
If there is a will, there is a way......question is HOW to do it?
Monday, October 25, 2010
India: Wedding insurance becoming more popular
Something unique..if Insurers in Malaysia can follow their India counterparts in providing such insurance.
Quote:
Wedding insurance is rapidly becoming the norm in India where spending on big fat weddings countrywide can total Rs700 billion (US$15.8 billion) a year according to some estimates, reports The Economic Times.
Since marriage is usually a one-time event, major insurance companies are offering the cover as an event insurance product, which can be customised to suit the needs of a wedding.
Asia Insurance Review 22/10/2010
Quote:
Wedding insurance is rapidly becoming the norm in India where spending on big fat weddings countrywide can total Rs700 billion (US$15.8 billion) a year according to some estimates, reports The Economic Times.
Since marriage is usually a one-time event, major insurance companies are offering the cover as an event insurance product, which can be customised to suit the needs of a wedding.
Asia Insurance Review 22/10/2010
Fire Insurance Clauses for Stocks and Other Contents (Part 3)
On my earlier postings, I have indicated the relevant clauses that can be applied to the insurance on the buildings and machineries.
Now let us examine the appropriate clauses that can be applied to the insurance on the stocks and office furnitures, fixtures and fittings and personal effects and other contents therein.
1.0 Stock Declaration Clause
(on stock with minimum SI of RM500,000 per location. Provisional premium of 75% is charged on the estimated annual stocks with adjustment in premium which can be additional premium or refund premium depending on the difference between the estimated annual stocks and the actual annual stocks declared)
2.0 Other Contents Clause
(Includes loss or damage to items not otherwise specified in the policy, in this case (a) money, stamps etc up to RM1,000 (ii) Documents, manuscripts etc up to RM1,000 (iii) Computer systems records for the value of the materials etc up to RM1,000 (iv) patterns, moulds, designs etc up to RM1,000 and (v) personal effects, clothing tools etc up to RM1,000. No premium charged unless specifically insured as separate items)
3.0 Temporary Storage Clause
(includes properties which form part of the stock or materials in trade which are temporary stored anywhere including in transit, all within Malaysia, Singapore and Brunei for a maximum of 6o days. Subject to a Limit of 10% of SI on stock or RM500,000 whichever is lower. No premium charged unless specifically insured as another permanent location - advisable if storage shall exceed the 60 days period)
4.0 Contract Price Clause
(Applicable only to goods which are custom made on contract basis where a profit margin has been added to the manufacturing cost. In the event of the goods already manufactured but not yet delivered to the customers, shall be desctroyed by an insured peril, and the sale contract is cancelled by such reason, the Insurer will pay the claim inclusive of the said profit which the Insured would have made if not because of the destruction. Sum Insured on the SIT must reflect the COG + the profit margin)
5.0 Vehicle Load Clause
(Occassionally, stocks in container may arrived in a vehicle which may be forced to park outside the warehouse, overnight, pending the unloading of the stocks into the building, the following day? A fire originated from the warehouse and spread to the stocks placed on the said vehicle? The stocks here are neither in the insured warehouse nor insured as goods in the open.This is where the Vehicle Load Clause comes in handy. The criteria for a claim here is that the goods must be on the vehicle at the material time of happening, not just placed on the ground which will come under the Goods in the Open, if specifically insured.Claim is limited to the value of goods contained in the damaged container). Free Clause.
6.0 Brand, Label & Trade Mark Clause
(This applies to the salvage of the goods. One would perceived that goods that are branded or trade marked would fetch a higher salvage value than others in a claim settlement. Regardless of either, claims for salvage shall be the "face" value only..example whether the brand of the shirt is "Dunhill" or "Ah Beng", it is just a shirt, nothing more nothing less). Free Clause.
7. Internal Removal Clause (for office appliances)
8. Temporary Removal Clause (for office appliances)
9. Designation Clause
10.Removal of Debris Clause
11.Automatic Hold Cover (Properties in New Locations) Clause
12.Appraisement Clause
(Note: Clause 7-12, please refer back to earlier postings on Clauses for Buildings/Machineries)
Now let us examine the appropriate clauses that can be applied to the insurance on the stocks and office furnitures, fixtures and fittings and personal effects and other contents therein.
1.0 Stock Declaration Clause
(on stock with minimum SI of RM500,000 per location. Provisional premium of 75% is charged on the estimated annual stocks with adjustment in premium which can be additional premium or refund premium depending on the difference between the estimated annual stocks and the actual annual stocks declared)
2.0 Other Contents Clause
(Includes loss or damage to items not otherwise specified in the policy, in this case (a) money, stamps etc up to RM1,000 (ii) Documents, manuscripts etc up to RM1,000 (iii) Computer systems records for the value of the materials etc up to RM1,000 (iv) patterns, moulds, designs etc up to RM1,000 and (v) personal effects, clothing tools etc up to RM1,000. No premium charged unless specifically insured as separate items)
3.0 Temporary Storage Clause
(includes properties which form part of the stock or materials in trade which are temporary stored anywhere including in transit, all within Malaysia, Singapore and Brunei for a maximum of 6o days. Subject to a Limit of 10% of SI on stock or RM500,000 whichever is lower. No premium charged unless specifically insured as another permanent location - advisable if storage shall exceed the 60 days period)
4.0 Contract Price Clause
(Applicable only to goods which are custom made on contract basis where a profit margin has been added to the manufacturing cost. In the event of the goods already manufactured but not yet delivered to the customers, shall be desctroyed by an insured peril, and the sale contract is cancelled by such reason, the Insurer will pay the claim inclusive of the said profit which the Insured would have made if not because of the destruction. Sum Insured on the SIT must reflect the COG + the profit margin)
5.0 Vehicle Load Clause
(Occassionally, stocks in container may arrived in a vehicle which may be forced to park outside the warehouse, overnight, pending the unloading of the stocks into the building, the following day? A fire originated from the warehouse and spread to the stocks placed on the said vehicle? The stocks here are neither in the insured warehouse nor insured as goods in the open.This is where the Vehicle Load Clause comes in handy. The criteria for a claim here is that the goods must be on the vehicle at the material time of happening, not just placed on the ground which will come under the Goods in the Open, if specifically insured.Claim is limited to the value of goods contained in the damaged container). Free Clause.
6.0 Brand, Label & Trade Mark Clause
(This applies to the salvage of the goods. One would perceived that goods that are branded or trade marked would fetch a higher salvage value than others in a claim settlement. Regardless of either, claims for salvage shall be the "face" value only..example whether the brand of the shirt is "Dunhill" or "Ah Beng", it is just a shirt, nothing more nothing less). Free Clause.
7. Internal Removal Clause (for office appliances)
8. Temporary Removal Clause (for office appliances)
9. Designation Clause
10.Removal of Debris Clause
11.Automatic Hold Cover (Properties in New Locations) Clause
12.Appraisement Clause
(Note: Clause 7-12, please refer back to earlier postings on Clauses for Buildings/Machineries)
Thursday, October 21, 2010
Philippines: Typhoon Megi wreaks damage estimated at less than US$150mil
Headquartered catastrophe modeling firm AIR Worldwide has estimated that insured losses to onshore properties in the Philippines from Super Typhoon Megi, which lashed the archipelago on Monday and Tuesday, will likely be less than PHP6.5 billion (US$150 million). AIR said its "loss estimates reflect insured damage to property (residential, commercial, industrial), and contents". Crop losses are not included.
Asia Insurance Review 21/10/2010
Asia Insurance Review 21/10/2010
Monday, October 18, 2010
Insurance Industry Honours Cream of Asia's Crop
Bali, Indonesia, 17 October 2010 – The crème de la crème of Asia's insurance industry was feted at the 14th Asia Insurance Industry Awards with several surprises.
For the first time, a Chinese company – China Pacific Life - swiped one of the most prestigious titles in the long history of the Awards, winning the Life Insurance Company of the year. Lonpac Insurance became the first Malaysian winner of the prestigious General Insurance Company of the Year award in recognition of its
responsiveness to customer needs and solid financial performance.
Another head turner was the Personality of the Year Award given to Mr Leslie Mouat, Chairman of Chartis Asia Pacific, for holding the team and the fort together in the wake of the global financial crisis and the AIG trauma.
Sompo Japan Insurance won the inaugural Green Company of the Year, awarded to the company which has given long-term commitment and resources to a sustainable green programme and has ensured its successful implementation. It is hoped that this Award will make the insurance industry more conscious of not only going green but also encouraging its clients to do the same.
India emerged as the market that won the most number of Awards, winning three of the 14 categories with Technology Initiative, Educational Service Provider and Corporate Social Responsibility.
The prestigious annual Awards are keenly contested by players in the Asian insurance markets in the region each year, and 2010 was no exception. The winners were selected by industry peers with 27 distinguished insurance leaders serving on the Panel of Judges.
The 14th Asia Insurance Industry Awards were jointly organised by Singapore-based Asia Insurance Review and London-based The Review Worldwide Reinsurance magazines.
This year's Awards presentation was held on the eve of the 25th East Asian Insurance Congress and attended by more than 400 senior executives and officials from the insurance industry at The Westin Resort Nusa Dua, Bali, Indonesia.
The Winners for 2010 are:-
Life Insurance Company of the Year
China Pacific Life (CPIC Life)
One of the pioneers of China's life insurance industry, CPIC Life has responded to market demands with products covering all seasons of life, using technology to reach out to customers.
General Insurance Company of the Year
Lonpac Insurance
Lonpac impressed the judges with its use of in-depth product knowledge and technology to meet customers' needs, while consistently maintaining a good financial performance.
Educational Service Provider of the Year
Joint Winners:
Australian & New Zealand Institute of Insurance and Finance (ANZIIF), and the MicroInsurance Academy (MIA)
ANZIIF was recognised for its continued achievement in developing and enhancing professional industry standards, while MIA's innovative training methods won admiration from its peers and the judging panel.
Innovation of the Year
EQECAT
EQECAT's Asia typhoon model has revolutionised the way in which the insurance and reinsurance industry evaluates risk in the region.
Service Provider of the Year
Mark International
Having operated in Asia since 1986, ReMark has become the market leader in providing alternative distribution and marketing solutions to its insurance partners across the region.
Broker of the Year
Marsh
The five-time winner of the Broker of the Year award continues to help its clients succeed in unpredictable environments.
Reinsurance Broker of the Year
Guy Carpenter
A winning combination of its global platform with local knowledge and execution capabilities has helped Guy Carpenter clinch the Reinsurance Broker of the Year title for the fourth time.
General Reinsurer of the Year
Allianz SE Reinsurance Branch Asia Pacific
Allianz SE Reinsurance Branch Asia Pacific is the General Reinsurance Company of theYear for the second time running, thanks to its client focus, consistently sound technical advice and tailor-made solutions.
Life Reinsurer of the Year
Swiss Re
Swiss Re has overcome the challenges of 2009 to win the Life Reinsurer of the Year accolade for the third time.
Corporate Social Responsibility Award
Aviva Life Insurance Co India
Aviva Life Insurance of India impressed the judging panel by demonstrating how corporate social responsibility can be closely and successfully tied with business strategy.
Green Company of the Year
Sompo Japan Insurance
Sompo Japan's long-running green programme and its tireless efforts in championing green initiatives have made it the clear winner in this category.
Technology Initiative of the Year
Financial Information Network and Operations Ltd (FINO)
For transforming the delivery of micro-health insurance services, FINO of India has won the inaugural Technology Initiative of the Year award.
Personality of the Year
Leslie John Mouat
Caring boss, consummate professional, industry expert and iron-disciplined corporate manager – these are fitting attributes of Les Mouat, Chairman of Chartis Asia Pacific, who demonstrated extraordinary leadership during the toughest of times.
Lifetime Achievement Award
Alfonso T Yuchengco
Alfonso Yuchengco has won the Lifetime Achievement Awards for his career as a businessman, banker, insurance maverick and diplomat.
Bernie Fung (1953-2010)
Bernie's sudden, untimely death earlier this year was a big blow to the industry and to all who knew him. This Award is a tribute to what he did for the industry he was so committed to.
Appendix:
The panel of 27 distinguished judges comprise:
Annie Choi, Commissioner of Insurance, Hong Kong
Dr Bassel Hindawi, Immediate Past Director General, Insurance Commission of Jordan
Chantra Purnariksha, Secretary-General, Office of Insurance Commission, Thailand
Dr Huang Tien-Mu, Director General, Insurance Bureau, Financial Supervisory Commission, Taiwan
Isa Rachmatarwata, Chief of Insurance Bureau, Indonesia
Alan Wilson, Regional Co-Chief Executive Officer, MSIG Holdings (Asia) Pte Ltd
Chai Sophonpanich, Chairman and President, Bangkok Insurance Public Co Ltd
Christopher Ho, Chairman, Singapore Reinsurer’s Association
Clarence Yeung, Managing Director, Client Markets Asia & Regional Broker Executive Asia, Swiss Reinsurance Company
David L Fried, Group General Manager and Group Head of Insurance, HSBC Holdings plc
David Kinloch, Chief Executive Officer, Labuan IBFC Inc Sdn Bhd
Hiroshi Fukushima, President & Chief Executive, The Toa Reinsurance Co Ltd
Leslie J Mouat, Chairman, Chartis Asia Pacific
Michael J Morrissey, President & Chief Executive Officer, International Insurance Society Inc
Patrick M Liedtke, Secretary General & Managing Director, The Geneva Association
Patrick Poon, Chairman of Operation Committee and Director, China Pacific Insurance (Life) Co Ltd
Richard Austen, Chairman, Reinsurance Brokers’ Association (Singapore)
Sara Lamsam, President, The Thai Life Assurance Association
Scott Ryrie, Chief Executive Officer, Allianz SE Reinsurance Branch Asia Pacific
Simon Machell, Chief Executive Officer, Asia Pacific Aviva Asia Pte Ltd
Stephen Collins, Chief Executive Officer, ReMark International B.V.
Tadashi Baba, Managing Director, Sompo Japan Asia Holdings Pte Ltd
Takashi Yoshikawa, Chief Executive Officer, Tokio Marine Asia Pte Ltd
Teddy Hailamsah, Secretary-General, Asean Insurance Council & Chairman, 25th EAIC Organizing Committee
Tony Cheng, Chief Executive Officer, Hong Kong & Southeast Asia and Executive Advisor, China & Taiwan, RGA Reinsurance Company
Yassir Albaharna, Chief Executive Officer, Arab Insurance Group (B.S.C.)
Yogesh Lohiya, Chairman cum Managing Director, General Insurance Corporation of India
Source: Asia Insurance Review 18/10/2010
For the first time, a Chinese company – China Pacific Life - swiped one of the most prestigious titles in the long history of the Awards, winning the Life Insurance Company of the year. Lonpac Insurance became the first Malaysian winner of the prestigious General Insurance Company of the Year award in recognition of its
responsiveness to customer needs and solid financial performance.
Another head turner was the Personality of the Year Award given to Mr Leslie Mouat, Chairman of Chartis Asia Pacific, for holding the team and the fort together in the wake of the global financial crisis and the AIG trauma.
Sompo Japan Insurance won the inaugural Green Company of the Year, awarded to the company which has given long-term commitment and resources to a sustainable green programme and has ensured its successful implementation. It is hoped that this Award will make the insurance industry more conscious of not only going green but also encouraging its clients to do the same.
India emerged as the market that won the most number of Awards, winning three of the 14 categories with Technology Initiative, Educational Service Provider and Corporate Social Responsibility.
The prestigious annual Awards are keenly contested by players in the Asian insurance markets in the region each year, and 2010 was no exception. The winners were selected by industry peers with 27 distinguished insurance leaders serving on the Panel of Judges.
The 14th Asia Insurance Industry Awards were jointly organised by Singapore-based Asia Insurance Review and London-based The Review Worldwide Reinsurance magazines.
This year's Awards presentation was held on the eve of the 25th East Asian Insurance Congress and attended by more than 400 senior executives and officials from the insurance industry at The Westin Resort Nusa Dua, Bali, Indonesia.
The Winners for 2010 are:-
Life Insurance Company of the Year
China Pacific Life (CPIC Life)
One of the pioneers of China's life insurance industry, CPIC Life has responded to market demands with products covering all seasons of life, using technology to reach out to customers.
General Insurance Company of the Year
Lonpac Insurance
Lonpac impressed the judges with its use of in-depth product knowledge and technology to meet customers' needs, while consistently maintaining a good financial performance.
Educational Service Provider of the Year
Joint Winners:
Australian & New Zealand Institute of Insurance and Finance (ANZIIF), and the MicroInsurance Academy (MIA)
ANZIIF was recognised for its continued achievement in developing and enhancing professional industry standards, while MIA's innovative training methods won admiration from its peers and the judging panel.
Innovation of the Year
EQECAT
EQECAT's Asia typhoon model has revolutionised the way in which the insurance and reinsurance industry evaluates risk in the region.
Service Provider of the Year
Mark International
Having operated in Asia since 1986, ReMark has become the market leader in providing alternative distribution and marketing solutions to its insurance partners across the region.
Broker of the Year
Marsh
The five-time winner of the Broker of the Year award continues to help its clients succeed in unpredictable environments.
Reinsurance Broker of the Year
Guy Carpenter
A winning combination of its global platform with local knowledge and execution capabilities has helped Guy Carpenter clinch the Reinsurance Broker of the Year title for the fourth time.
General Reinsurer of the Year
Allianz SE Reinsurance Branch Asia Pacific
Allianz SE Reinsurance Branch Asia Pacific is the General Reinsurance Company of theYear for the second time running, thanks to its client focus, consistently sound technical advice and tailor-made solutions.
Life Reinsurer of the Year
Swiss Re
Swiss Re has overcome the challenges of 2009 to win the Life Reinsurer of the Year accolade for the third time.
Corporate Social Responsibility Award
Aviva Life Insurance Co India
Aviva Life Insurance of India impressed the judging panel by demonstrating how corporate social responsibility can be closely and successfully tied with business strategy.
Green Company of the Year
Sompo Japan Insurance
Sompo Japan's long-running green programme and its tireless efforts in championing green initiatives have made it the clear winner in this category.
Technology Initiative of the Year
Financial Information Network and Operations Ltd (FINO)
For transforming the delivery of micro-health insurance services, FINO of India has won the inaugural Technology Initiative of the Year award.
Personality of the Year
Leslie John Mouat
Caring boss, consummate professional, industry expert and iron-disciplined corporate manager – these are fitting attributes of Les Mouat, Chairman of Chartis Asia Pacific, who demonstrated extraordinary leadership during the toughest of times.
Lifetime Achievement Award
Alfonso T Yuchengco
Alfonso Yuchengco has won the Lifetime Achievement Awards for his career as a businessman, banker, insurance maverick and diplomat.
Bernie Fung (1953-2010)
Bernie's sudden, untimely death earlier this year was a big blow to the industry and to all who knew him. This Award is a tribute to what he did for the industry he was so committed to.
Appendix:
The panel of 27 distinguished judges comprise:
Annie Choi, Commissioner of Insurance, Hong Kong
Dr Bassel Hindawi, Immediate Past Director General, Insurance Commission of Jordan
Chantra Purnariksha, Secretary-General, Office of Insurance Commission, Thailand
Dr Huang Tien-Mu, Director General, Insurance Bureau, Financial Supervisory Commission, Taiwan
Isa Rachmatarwata, Chief of Insurance Bureau, Indonesia
Alan Wilson, Regional Co-Chief Executive Officer, MSIG Holdings (Asia) Pte Ltd
Chai Sophonpanich, Chairman and President, Bangkok Insurance Public Co Ltd
Christopher Ho, Chairman, Singapore Reinsurer’s Association
Clarence Yeung, Managing Director, Client Markets Asia & Regional Broker Executive Asia, Swiss Reinsurance Company
David L Fried, Group General Manager and Group Head of Insurance, HSBC Holdings plc
David Kinloch, Chief Executive Officer, Labuan IBFC Inc Sdn Bhd
Hiroshi Fukushima, President & Chief Executive, The Toa Reinsurance Co Ltd
Leslie J Mouat, Chairman, Chartis Asia Pacific
Michael J Morrissey, President & Chief Executive Officer, International Insurance Society Inc
Patrick M Liedtke, Secretary General & Managing Director, The Geneva Association
Patrick Poon, Chairman of Operation Committee and Director, China Pacific Insurance (Life) Co Ltd
Richard Austen, Chairman, Reinsurance Brokers’ Association (Singapore)
Sara Lamsam, President, The Thai Life Assurance Association
Scott Ryrie, Chief Executive Officer, Allianz SE Reinsurance Branch Asia Pacific
Simon Machell, Chief Executive Officer, Asia Pacific Aviva Asia Pte Ltd
Stephen Collins, Chief Executive Officer, ReMark International B.V.
Tadashi Baba, Managing Director, Sompo Japan Asia Holdings Pte Ltd
Takashi Yoshikawa, Chief Executive Officer, Tokio Marine Asia Pte Ltd
Teddy Hailamsah, Secretary-General, Asean Insurance Council & Chairman, 25th EAIC Organizing Committee
Tony Cheng, Chief Executive Officer, Hong Kong & Southeast Asia and Executive Advisor, China & Taiwan, RGA Reinsurance Company
Yassir Albaharna, Chief Executive Officer, Arab Insurance Group (B.S.C.)
Yogesh Lohiya, Chairman cum Managing Director, General Insurance Corporation of India
Source: Asia Insurance Review 18/10/2010
Sunday, October 17, 2010
The Obese could pay more for Insurance in China
An interesting news:
Life insurers in China can charge obese people, whose body mass indexes (BMIs) exceed 30 for men and 28.6 for women, up to 200% more than normal premiums, as research shows they are more likely to get ill than those who are of normal weight, reports the Xinhua News Agency. The BMI is obtained by dividing one's mass over the square of one's height in metres.
Asia Insurance Review 15/10/2010
Life insurers in China can charge obese people, whose body mass indexes (BMIs) exceed 30 for men and 28.6 for women, up to 200% more than normal premiums, as research shows they are more likely to get ill than those who are of normal weight, reports the Xinhua News Agency. The BMI is obtained by dividing one's mass over the square of one's height in metres.
Asia Insurance Review 15/10/2010
Retirement Funds
Employees in Malaysia should set aside at least 10% of their income apart contributions to the mandatory government-run Employees Provident Fund (EPF) for their retirement, reports the Bernama news agency citing Financial Planning Association of Malaysia deputy president, Mr Tan Beng Wah.
Asia Insurance Review 15/10/2010
Asia Insurance Review 15/10/2010
Wednesday, October 13, 2010
Fire Insurance Clauses for Machineries (Part 2)
In my earlier postings on Fire Insurance Clauses, I mentioned that there are numbers of Clauses that can be applied to the plant and machineries to be insured. Amongst the many includes:
Electrical Installation Clause B (as a buy back cover for damage to machinery arising from excessive running or over heating process). Additional rate of 0.056% is charged.
Hire Purchase / Leasing (protects the financial interest of the financer against loss or damage on the subject charged to the banks/leased by Insured)
Internal Removal Clause (includes claim for any items that had been moved from one insured premises to another insured premises within the territorial limits but indvertently not advised to the Insurer). Pro-rata premium is charged for the omitted items)
Temporary Removal Clause (includes claim for any loss or damage to the machinery whilst under repair, maintenance or servicing work at any other premises within the territorial limits)
Computer Systems Records Clause (includes claim for the value of materials together with clerical labour and computer time expended in reproducing such records and not for the value of the information therein)
Removal of Debris Clause (cost incurred to remove the debris in order for reinstatement work to proceed). Can insure separately or incorporate as part of the sum insured.
Capital Addition Clause with minimum SI of RM1.5m )
Designation Clause ) simiar application as explained
Automatic Hold Cover for new locations Clause ) under the Clauses for building
Appraisement Clause )
Reinstatement Value Clause (up to 5 years old) )
Market Value & Escalation Clause )
(older machines) )
Next posting : Fire Insurance Clauses for Stocks and other Contents
Electrical Installation Clause B (as a buy back cover for damage to machinery arising from excessive running or over heating process). Additional rate of 0.056% is charged.
Hire Purchase / Leasing (protects the financial interest of the financer against loss or damage on the subject charged to the banks/leased by Insured)
Internal Removal Clause (includes claim for any items that had been moved from one insured premises to another insured premises within the territorial limits but indvertently not advised to the Insurer). Pro-rata premium is charged for the omitted items)
Temporary Removal Clause (includes claim for any loss or damage to the machinery whilst under repair, maintenance or servicing work at any other premises within the territorial limits)
Computer Systems Records Clause (includes claim for the value of materials together with clerical labour and computer time expended in reproducing such records and not for the value of the information therein)
Removal of Debris Clause (cost incurred to remove the debris in order for reinstatement work to proceed). Can insure separately or incorporate as part of the sum insured.
Capital Addition Clause with minimum SI of RM1.5m )
Designation Clause ) simiar application as explained
Automatic Hold Cover for new locations Clause ) under the Clauses for building
Appraisement Clause )
Reinstatement Value Clause (up to 5 years old) )
Market Value & Escalation Clause )
(older machines) )
Next posting : Fire Insurance Clauses for Stocks and other Contents
Friday, October 8, 2010
Malaysia: Insurers see 20% growth this year
The life insurance industry will grow by more than 20% this year and show a stronger performance next year, according to the Life Insurance Association of Malaysia (LIAM).
Asia Insurance Review 7/10/2010
Asia Insurance Review 7/10/2010
Tuesday, October 5, 2010
Malaysia: Insurance sector backs government plans for private pension funds
Insurers in Malaysia are all for a government initiative to promote private pension funds in the country but add that the plans needs skilled insurers and fund managers that hold long-term views for private pension schemes to be effective, reports The Star newspaper.
Other Asia News
2. Japan: US giants compete in Japan
Two US insurers -Prudential Financial and MetLife – are battling it out for business in Japan as
American International Group sells two Japanese life insurance units to Prudential Financial, while it completes a deal with MetLife for American Life Insurance (Alico).
3. India: Foreign parties cannot have majority share in insurers after listing. When insurance joint ventures in India go public, their promoters will have to bring down their stake in the companies to a proportion that allows the Indian promoters to hold a majority of the capital, reports the Financial Chronicle citing the head of the Insurance Regulatory and Development Authority (IRDA).
4. Australia: Flood cover expands Down UnderMore than half of the Australian market now has access to flood cover compared to the years before 2008 when there was little flood insurance available in the country, reports the Sydney Morning Herald citing the Insurance Council of Australia (ICA), which represents non-life insurers in the country.
5. Vietnam: Govt studying Thailand's health insurance systemVietnam is looking at developing its national health insurance system based on Thailand's successful model, reports the Bangkok-based The Nation newspaper.
Source: Asia Insurance Review 5/10/2010
Other Asia News
2. Japan: US giants compete in Japan
Two US insurers -Prudential Financial and MetLife – are battling it out for business in Japan as
American International Group sells two Japanese life insurance units to Prudential Financial, while it completes a deal with MetLife for American Life Insurance (Alico).
3. India: Foreign parties cannot have majority share in insurers after listing. When insurance joint ventures in India go public, their promoters will have to bring down their stake in the companies to a proportion that allows the Indian promoters to hold a majority of the capital, reports the Financial Chronicle citing the head of the Insurance Regulatory and Development Authority (IRDA).
4. Australia: Flood cover expands Down UnderMore than half of the Australian market now has access to flood cover compared to the years before 2008 when there was little flood insurance available in the country, reports the Sydney Morning Herald citing the Insurance Council of Australia (ICA), which represents non-life insurers in the country.
5. Vietnam: Govt studying Thailand's health insurance systemVietnam is looking at developing its national health insurance system based on Thailand's successful model, reports the Bangkok-based The Nation newspaper.
Source: Asia Insurance Review 5/10/2010
Sunday, October 3, 2010
Fire Insurance Clauses for Buildings (Part 1)
There are many Clauses available for use in the Fire Insurance Policy but do not mean that we can apply them across the board as some of these clauses are not relevant at all to the subject matter insured.
Generally, let us look at the applicability of some of the common clauses for buildings followed separately by machineries, stocks and other contents insured.
Suggested Clauses for Buildings
1) Mortgagee Clause (protects the financial interest of the bank to whom the building is mortgaged)
2) Automatic Renewal Clause (to be used in conjunction with the Mortgagee Clause -applicable to the bank issued proposal only)
3) Outbuildings Clause (need to top up the sum insured to include all other external structures such as gates, fences, garages etc which are outside the description of the main building)
4) Reinstatement Value Clause (specifies that indemnity is based on the cost incurred at the time of reconstruction not at the time of loss or damage)
5) Reinstatement Value-Day One Clause (caters to the inflation factor in the event the new reconstruction cost of the building exceeds the Policy's Reinstatement Value sum insured)
6) Designation Clause (protects the interest of the Insured. Insurer cannot dispute the claim in the event the name of the insured appearing in the receipt/invoice does not tally with the name appearing in the policy so long it can be proven that the Insured is the interested party insured under the policy)
7) Capital Addition Clause with minimum sum insured of RM1.5 million (caters to the alterations, improvements and additions to the existing buildings after the inception of cover, which total sum to be declared to the Insurer within 90 days therefrom for an additional premium to be charged)
8) Architect, Surveyors and Consultant's Fees (not included in the claim unless separately insured or included as part of the sum insured.(Fire pays for physical damage to the structures only not the fees incurred)
9) Removal of Debris Clause (same as 8)
10) Foundation Exclusion Clause (Insurer will incorporate this Clause automatically. Can request to waive this clause if there is an absolutle risk of the foundation being damaged by a peril especially from the act of God. Sum insured must include the cost of the foundation)
11) Public Authority Clause (need to top up the sum insured to cater to the additional cost incurred in reinstating the building according to the new building by-laws which was not in place then.This holds true for pre-war buildings which may not meet today's new buildings by-laws etc)
12) Appraisement Clause (expedites the claim. Proof of purchase/invoice/ receipts are required for the damaged items only so long the loss does not exceed 5% of sum insured or RM 5,000 whichever is the lower)
13) Alterations & Repair Clause (protects the interest of the Insured in the event of a loss occurring in the premises caused by workmen performing some renovation, improvement works etc)
14) Tenant's Clause (protects the owner non occupier of the building against any claim due to the change in risk/occupation committed by the tenant without the knowledge of the owner. Insurer will honour the claim but the owner must agree to pay the difference in the premium based on pro-rata from the date the change in risk took effect)
15) Automatic Hold Cover for New Locations (good for Insured who may acquire new properties elsewhere within the insured territorial limits as part of their business expansion. Insurer will provide a 30 days grace period to cater to this new acquisition subject to declaration within 30 days therefrom and additional premium is paid based on pro-rata basis)
Next: Fire Insurance Clauses for Machineries
Generally, let us look at the applicability of some of the common clauses for buildings followed separately by machineries, stocks and other contents insured.
Suggested Clauses for Buildings
1) Mortgagee Clause (protects the financial interest of the bank to whom the building is mortgaged)
2) Automatic Renewal Clause (to be used in conjunction with the Mortgagee Clause -applicable to the bank issued proposal only)
3) Outbuildings Clause (need to top up the sum insured to include all other external structures such as gates, fences, garages etc which are outside the description of the main building)
4) Reinstatement Value Clause (specifies that indemnity is based on the cost incurred at the time of reconstruction not at the time of loss or damage)
5) Reinstatement Value-Day One Clause (caters to the inflation factor in the event the new reconstruction cost of the building exceeds the Policy's Reinstatement Value sum insured)
6) Designation Clause (protects the interest of the Insured. Insurer cannot dispute the claim in the event the name of the insured appearing in the receipt/invoice does not tally with the name appearing in the policy so long it can be proven that the Insured is the interested party insured under the policy)
7) Capital Addition Clause with minimum sum insured of RM1.5 million (caters to the alterations, improvements and additions to the existing buildings after the inception of cover, which total sum to be declared to the Insurer within 90 days therefrom for an additional premium to be charged)
8) Architect, Surveyors and Consultant's Fees (not included in the claim unless separately insured or included as part of the sum insured.(Fire pays for physical damage to the structures only not the fees incurred)
9) Removal of Debris Clause (same as 8)
10) Foundation Exclusion Clause (Insurer will incorporate this Clause automatically. Can request to waive this clause if there is an absolutle risk of the foundation being damaged by a peril especially from the act of God. Sum insured must include the cost of the foundation)
11) Public Authority Clause (need to top up the sum insured to cater to the additional cost incurred in reinstating the building according to the new building by-laws which was not in place then.This holds true for pre-war buildings which may not meet today's new buildings by-laws etc)
12) Appraisement Clause (expedites the claim. Proof of purchase/invoice/ receipts are required for the damaged items only so long the loss does not exceed 5% of sum insured or RM 5,000 whichever is the lower)
13) Alterations & Repair Clause (protects the interest of the Insured in the event of a loss occurring in the premises caused by workmen performing some renovation, improvement works etc)
14) Tenant's Clause (protects the owner non occupier of the building against any claim due to the change in risk/occupation committed by the tenant without the knowledge of the owner. Insurer will honour the claim but the owner must agree to pay the difference in the premium based on pro-rata from the date the change in risk took effect)
15) Automatic Hold Cover for New Locations (good for Insured who may acquire new properties elsewhere within the insured territorial limits as part of their business expansion. Insurer will provide a 30 days grace period to cater to this new acquisition subject to declaration within 30 days therefrom and additional premium is paid based on pro-rata basis)
Next: Fire Insurance Clauses for Machineries
Friday, September 24, 2010
Tuesday, September 21, 2010
Fire Insurance Clauses
Based on the Malaysian Revised Fire Tariff (RFT), there are easily 40 clauses available for use in the Fire Insurance Policy. Many queries were raised by Agents as to why Insurers do not voluntary incorporate these clauses into the client's fire insurance policy unless requested in writing.
Honestly speaking, Insurers had nothing to hide from the Agents/Clients, as majority of these Clauses are pre-printed in the policy jacket for all to read. Agents should take the initiative (forget the layman) to refer to the RFT for the relevant Clauses and request be made to incorporate same into the policy when submitting the proposal or renewal to the Insurers. As long as these Clauses are approved by BNM and relevant to the subject matter insured, there are no reasons for Insurers to reject such request.
Technically, there are 3 categories of Clauses that Agents should take note.
1st Category (Premium is charged on inception)
Escalation Clause (to cater to the subsequent appreciation in value of the subject matter)
Public Authority Clause (by topping up the SI to cater to the requiremnent of new building by-laws etc)
Removal of Debris Clause (by topping up the SI to cater to the cost of removing the debris or insured as a separate item)
Architect , Surveyor & Consultant Fees (by topping up the SI to cater to all professional fees incurred or insured as a separate item)
Reinstatement Value Clause (by topping up the SI to cater to further increase in the reconstruction cost)
Contract Price Clause (by topping up the SI to cater to the profit margin for goods manufactured but not delivered)
Outbuildings Clause (by topping up the SI to cater to ancilliaries like fences, gates, guard post etc)
2nd Category (Premium is charged /refundable upon declaration)
Capital Addition Clause with minimum SI RM 1.5Mil (declaration to be made within 3 months)
Stock Declaration Clause (monthly declaration)
Reinstatement Value-Day One (declaration at the end of 12 months)
Internal Removal Clause (retospective from the date of removal or oversight)
3rd Category (Free of Charge)
Other Contents Clause (Limit R1,000)
Designation Clause
Appraisement Clause (5% of SI or RM5,000 the lower of)
Temporary Removal Clause
Temporary Storage Clause (Limit R500,000 up to 60 days)
Alteration & Repair Clause
Mortgagee Clause / Automatic Renewal Clause
Hire Purchase Clause
Computer Systems Records Clause
Vehicle Load Clause
The questions now are:
"What" Clauses should be applied to the Building or to the Machineries or to the stock in trade or across the board etc? and
"Why" these Clauses are so important to the clients? To be continued
Honestly speaking, Insurers had nothing to hide from the Agents/Clients, as majority of these Clauses are pre-printed in the policy jacket for all to read. Agents should take the initiative (forget the layman) to refer to the RFT for the relevant Clauses and request be made to incorporate same into the policy when submitting the proposal or renewal to the Insurers. As long as these Clauses are approved by BNM and relevant to the subject matter insured, there are no reasons for Insurers to reject such request.
Technically, there are 3 categories of Clauses that Agents should take note.
1st Category (Premium is charged on inception)
Escalation Clause (to cater to the subsequent appreciation in value of the subject matter)
Public Authority Clause (by topping up the SI to cater to the requiremnent of new building by-laws etc)
Removal of Debris Clause (by topping up the SI to cater to the cost of removing the debris or insured as a separate item)
Architect , Surveyor & Consultant Fees (by topping up the SI to cater to all professional fees incurred or insured as a separate item)
Reinstatement Value Clause (by topping up the SI to cater to further increase in the reconstruction cost)
Contract Price Clause (by topping up the SI to cater to the profit margin for goods manufactured but not delivered)
Outbuildings Clause (by topping up the SI to cater to ancilliaries like fences, gates, guard post etc)
2nd Category (Premium is charged /refundable upon declaration)
Capital Addition Clause with minimum SI RM 1.5Mil (declaration to be made within 3 months)
Stock Declaration Clause (monthly declaration)
Reinstatement Value-Day One (declaration at the end of 12 months)
Internal Removal Clause (retospective from the date of removal or oversight)
3rd Category (Free of Charge)
Other Contents Clause (Limit R1,000)
Designation Clause
Appraisement Clause (5% of SI or RM5,000 the lower of)
Temporary Removal Clause
Temporary Storage Clause (Limit R500,000 up to 60 days)
Alteration & Repair Clause
Mortgagee Clause / Automatic Renewal Clause
Hire Purchase Clause
Computer Systems Records Clause
Vehicle Load Clause
The questions now are:
"What" Clauses should be applied to the Building or to the Machineries or to the stock in trade or across the board etc? and
"Why" these Clauses are so important to the clients? To be continued
Loss estimates rise for Typhoon Fanapi
Taiwan:
Typhoon Fanapi, the worst storm tohit Taiwan this year, inflicted damage estimated at NT$3 billion (US$95 million) in industrial parks in the south of the island on Sunday, according to preliminary estimates by the Ministry of Economic Affairs.
Updated Asia Insurance Review 22/9/2010
Another act of God catastrophe!!! After earthquake in Christchurch, NZ now Typhoon in Taiwan.
Govt reports initial loss estimate from Typhoon Fanapi Taiwan's agriculture sector has suffered losses of NT$267 million (US$8.43 million) so far from Typhoon Fanapi, which landed on Taiwan on Sunday and is the most powerful typhoon to batter the island this year, according to a statement by the Council of Agriculture, the island's farming regulator.
Asia Insurance Review 21/9/2010
Typhoon Fanapi, the worst storm tohit Taiwan this year, inflicted damage estimated at NT$3 billion (US$95 million) in industrial parks in the south of the island on Sunday, according to preliminary estimates by the Ministry of Economic Affairs.
Updated Asia Insurance Review 22/9/2010
Another act of God catastrophe!!! After earthquake in Christchurch, NZ now Typhoon in Taiwan.
Govt reports initial loss estimate from Typhoon Fanapi Taiwan's agriculture sector has suffered losses of NT$267 million (US$8.43 million) so far from Typhoon Fanapi, which landed on Taiwan on Sunday and is the most powerful typhoon to batter the island this year, according to a statement by the Council of Agriculture, the island's farming regulator.
Asia Insurance Review 21/9/2010
Sunday, September 12, 2010
Room to grow in life insurance sector
Malaysia's insurance market remains largely untapped with the average sum assured being less than MYR50,000 (US$16,000), and more can be done to raise the level of awareness of insurance, reports the Bernama news agency.
Asia Insurance Review 10/9/2010
Asia Insurance Review 10/9/2010
Tuesday, September 7, 2010
Costs of Saturday quake at Christchurch, N.Zealand could total US$1.4 bln.
New Zealand:
The cost of damage from last Saturday's devastating 7.1-magnitude quake in Christchurch, New Zealand's second largest city, could be as much as NZ$2 billion (US$1.44billion), according to media reports from New Zealand.
Asia Insurance Review 4/9/2010
The cost of damage from last Saturday's devastating 7.1-magnitude quake in Christchurch, New Zealand's second largest city, could be as much as NZ$2 billion (US$1.44billion), according to media reports from New Zealand.
Asia Insurance Review 4/9/2010
More taking up health insurance
Malaysia:
Rising medical costs have prompted more Malaysians to purchase multiple health insurance policies, with some even extending their cover up to the age of 100, reports the Star newspaper.
A check with several major insurance firms showed good demand from the working population on extending their medical cover until at least the age of 80.
So Agents, take this opportunity to push for more sales
Rising medical costs have prompted more Malaysians to purchase multiple health insurance policies, with some even extending their cover up to the age of 100, reports the Star newspaper.
A check with several major insurance firms showed good demand from the working population on extending their medical cover until at least the age of 80.
So Agents, take this opportunity to push for more sales
Monday, September 6, 2010
TOYOTA CAMRY 2.0E FOR SALE
Many extras: high powered amplifier, 4R/4F speakers, led wing mirror, fog lights, door visor, lace cushion cover etc
4 new michelin tyres and new battery.
Price: RM71,500.00 neg. View to believe
Interested, call steven 012-3373837
Friday, September 3, 2010
BNM issues 4 family takaful licences
Following the announcement made at the end of April 2009 on the issuance of two family takaful licences under liberalisation of the financial services sector, Bank Negara Malaysia (BNM) received several strong applications for the family takaful licences and has decided to
approve four takaful joint ventures involving:
i) AIA Bhd (70%) and Aliance Bank Malaysia Bhd (30%)
ii) AMMB Holdings Bhd (70%) and Friends Provident Group pls UK (30%)
iii) ING Management Holdings Sdn Bhd (60%), Public Bank Bhd (20%) and Public Islamic
Bank Bhd (20%)
iv) The Great Eastern Life Assrance Co Ltd (70%) and Koperasi Angkatan Tentera Malaysia
Bhd (30%)
Previously there were 8 existing takaful operators in Malaysia, namely CIMB Aviva Takaful Bhd, Etiqa Takaful Bhd, Hong Leong Tokio Marine Takaful Bhd, HSBC Amanah Takaful sdn Bhd, MAA Takaful Bhd, Prudential BSN Takaful Bhd, Sykt Takaful Malaysia Bhd and Takaful Ikhlas Sdn Bhd.
An industry observer lauded BNM move. With more takaful players coming in, competition will be steeper but customers can enjoy better pricing for the takaful products.
The penetration for takaful in Malaysia is around 10% compared with oventional insurance which stands at around 40%.
StarBiz 2/9/2010
approve four takaful joint ventures involving:
i) AIA Bhd (70%) and Aliance Bank Malaysia Bhd (30%)
ii) AMMB Holdings Bhd (70%) and Friends Provident Group pls UK (30%)
iii) ING Management Holdings Sdn Bhd (60%), Public Bank Bhd (20%) and Public Islamic
Bank Bhd (20%)
iv) The Great Eastern Life Assrance Co Ltd (70%) and Koperasi Angkatan Tentera Malaysia
Bhd (30%)
Previously there were 8 existing takaful operators in Malaysia, namely CIMB Aviva Takaful Bhd, Etiqa Takaful Bhd, Hong Leong Tokio Marine Takaful Bhd, HSBC Amanah Takaful sdn Bhd, MAA Takaful Bhd, Prudential BSN Takaful Bhd, Sykt Takaful Malaysia Bhd and Takaful Ikhlas Sdn Bhd.
An industry observer lauded BNM move. With more takaful players coming in, competition will be steeper but customers can enjoy better pricing for the takaful products.
The penetration for takaful in Malaysia is around 10% compared with oventional insurance which stands at around 40%.
StarBiz 2/9/2010
Wednesday, September 1, 2010
Road accidents result in economic losses of nearly US$3 bln in '09.
Malaysia:
Road accidents are exacting a heavy price toll on Malaysia, causing the economy losses of about RM9.3 billion (US$2.96 billion) last year, reports the Bernama news agency citing Road Safety Department Director-General, Mr Suret Singh. The figure represents about 1.5% of the country's GDP.
Asia Insurance Review 31/8/2010
Road accidents are exacting a heavy price toll on Malaysia, causing the economy losses of about RM9.3 billion (US$2.96 billion) last year, reports the Bernama news agency citing Road Safety Department Director-General, Mr Suret Singh. The figure represents about 1.5% of the country's GDP.
Asia Insurance Review 31/8/2010
Basics of Fire Insurance
The Fire Insurance Policy states:
"In consideration of the Insured named in the schedule hereto paying to the abovementioned Company (hereinafter called ABC Insurance Co Bhd) the premium mentioned in the said schedule.
The Company agrees subject to the terms and conditions contained herein or endorsed or otherwise expressed hereon that if the property insured described in the said schedule or any part of such property be destroyed or damaged by Fire or Lightning during the period of insurance stated in the said schedule or any subsequent period in respect of which the Insured shall have paid and the company shall have accepted the premium required for the renewal of this policy , the company will pay or make good to the Insured the value of the property Insured at the time of the happening of its destruction or amount of such damage.
Provided that the liability of the company shall in no case exceed in respect of each item the sum expressed in the schedule to be insured thereon or in the whole the total sum insured hereby or other such sum or sums as may be substituted therefor by endorsement hereon or attached hereto signed by or on behalf of the company.
Provided always that due observance and fulfilment of the terms and conditions and endorsements of this policy in so far as they relate to anything to be done or complied with by the Insured shall be conditions precedent to any liability of the company to make payment under this policy"
To have a basic understanding of this policy, we shall examine all the key words underlined above and the intended application.
Consideration:
Refers to the "premium" paid by the Insured and the "acceptance" of the premium and "commitment" by the Insurer to pay a claim due to an insured peril or extended peril subject to the terms and conditions of the policy
Terms and Conditions:
There are 4 categories here.
i) Conditions precedent to Contract
* Misdescription or Concealment
* Due Diligence and care
* Payment of Premium
ii) Conditions subsequent to Contract
* Cancellation
* Change or alteration in risk
iii) Conditions precedent to Liability
* Notice of Claim
* Arbitration
* Average
* Contribution
* Subrogation
iv) Excluded Perils / Property/ Loss/ Liability
* Flood, earthquake, flood or other convulsion of nature
* Displacement of building
* Marine Damage
* Pollution or contamination liability
* War and allied perils
* Goods held in trust or on commission
* Cash, manuscripts, moulds, personal effects etc
The Property:
Can mean the buildings, the machineries, the stocks, the office contents, furnitures, fixtures and fittings as well as the professional fees connected with the removal of deris, architects and surveyors fees
Fire and Lightning:
These 2 are the basic perils provided under the fire policy.
Domestic explosion is not specified in the operative clause but shall deemed to be loss by fire so long as the gas is not generated therein and which does not form part of any gas works
Extraneous Perils
Excluded perils such as flood, storm, earthquake, aircraft damage, standard explosion etc and uninsured perils such as aircraft damage, impact damage, damage by falling trees etc are usually incoporated into the policy by way of endorsements subject to additional premium (See Section 5 of RFT)
Destroyed or Damaged:
Property insured can be totally destroyed or partially damaged for a claim to be registered.
Destroyed means total loss and Insurer will pay the claim based on the value of the property insured at the time of the happening of its destruction subject to the maximum sum insured
Damaged means partial loss and Insurer will pay or make good the amount of such damaged subject to the application of average (for underinsurance).
Pay or Make Good:
Pay refers to the cash payment (usually by cheque) issued by the Insurer to the Insured being the cost incurred to repair or replace or reinstate the subject property
Make good refers to the physical repair or replacement or reinstatement of the subject property (instead of cash payment), these options can only be exercised by the Insurer should the Insured decides not to accept the cash payment which is not to the latter's expectation of a full indemnity or compensation.
Liability of the Insurer:
Limits to the sum insured of each item. Meaning the sum insured stated against the item insured is the maximum payable by the Insurer. No offset business.
Example:
Building insured for RM 500,000
Machinery insured for RM1,000,000
Caim for damage to building is RM200,000 (with a balance sum insured of RM300,000).
Claim for machinery is RM1,100,000 (exceeded the sum insured). Insurer will limit the claim for this item to RM1,000,000 being the maximum sum insured.
Insurer will not allow the balance amount of RM300,000 from the building sum insured to be used to offset the RM100,000 shortfall under the machinery sum insured.
Maximum claim payable under the policy shall not exceed the total sum insured of all properties insured
Due Observance and Fulfilment of Terms and Conditions:
Failure of the Insured to comply with any of the policy terms and conditions can render the policy null and void.
Examples: failure to advise the change in the occupation of the building or late in notifying the Insurer of a claim, breach of the 60 days premium warranty etc
The Schedule:
Basically, it contain the details of the Insured, the subject matter insured and the clauses/warranties applicable
Examples:
Description of property insured, period of insurance, sum insured, name of Insured, nature of business, construction of building, premium charged and clauses/warranties applicable etc
Next Posting will be on Clauses and their intended application
"In consideration of the Insured named in the schedule hereto paying to the abovementioned Company (hereinafter called ABC Insurance Co Bhd) the premium mentioned in the said schedule.
The Company agrees subject to the terms and conditions contained herein or endorsed or otherwise expressed hereon that if the property insured described in the said schedule or any part of such property be destroyed or damaged by Fire or Lightning during the period of insurance stated in the said schedule or any subsequent period in respect of which the Insured shall have paid and the company shall have accepted the premium required for the renewal of this policy , the company will pay or make good to the Insured the value of the property Insured at the time of the happening of its destruction or amount of such damage.
Provided that the liability of the company shall in no case exceed in respect of each item the sum expressed in the schedule to be insured thereon or in the whole the total sum insured hereby or other such sum or sums as may be substituted therefor by endorsement hereon or attached hereto signed by or on behalf of the company.
Provided always that due observance and fulfilment of the terms and conditions and endorsements of this policy in so far as they relate to anything to be done or complied with by the Insured shall be conditions precedent to any liability of the company to make payment under this policy"
To have a basic understanding of this policy, we shall examine all the key words underlined above and the intended application.
Consideration:
Refers to the "premium" paid by the Insured and the "acceptance" of the premium and "commitment" by the Insurer to pay a claim due to an insured peril or extended peril subject to the terms and conditions of the policy
Terms and Conditions:
There are 4 categories here.
i) Conditions precedent to Contract
* Misdescription or Concealment
* Due Diligence and care
* Payment of Premium
ii) Conditions subsequent to Contract
* Cancellation
* Change or alteration in risk
iii) Conditions precedent to Liability
* Notice of Claim
* Arbitration
* Average
* Contribution
* Subrogation
iv) Excluded Perils / Property/ Loss/ Liability
* Flood, earthquake, flood or other convulsion of nature
* Displacement of building
* Marine Damage
* Pollution or contamination liability
* War and allied perils
* Goods held in trust or on commission
* Cash, manuscripts, moulds, personal effects etc
The Property:
Can mean the buildings, the machineries, the stocks, the office contents, furnitures, fixtures and fittings as well as the professional fees connected with the removal of deris, architects and surveyors fees
Fire and Lightning:
These 2 are the basic perils provided under the fire policy.
Domestic explosion is not specified in the operative clause but shall deemed to be loss by fire so long as the gas is not generated therein and which does not form part of any gas works
Extraneous Perils
Excluded perils such as flood, storm, earthquake, aircraft damage, standard explosion etc and uninsured perils such as aircraft damage, impact damage, damage by falling trees etc are usually incoporated into the policy by way of endorsements subject to additional premium (See Section 5 of RFT)
Destroyed or Damaged:
Property insured can be totally destroyed or partially damaged for a claim to be registered.
Destroyed means total loss and Insurer will pay the claim based on the value of the property insured at the time of the happening of its destruction subject to the maximum sum insured
Damaged means partial loss and Insurer will pay or make good the amount of such damaged subject to the application of average (for underinsurance).
Pay or Make Good:
Pay refers to the cash payment (usually by cheque) issued by the Insurer to the Insured being the cost incurred to repair or replace or reinstate the subject property
Make good refers to the physical repair or replacement or reinstatement of the subject property (instead of cash payment), these options can only be exercised by the Insurer should the Insured decides not to accept the cash payment which is not to the latter's expectation of a full indemnity or compensation.
Liability of the Insurer:
Limits to the sum insured of each item. Meaning the sum insured stated against the item insured is the maximum payable by the Insurer. No offset business.
Example:
Building insured for RM 500,000
Machinery insured for RM1,000,000
Caim for damage to building is RM200,000 (with a balance sum insured of RM300,000).
Claim for machinery is RM1,100,000 (exceeded the sum insured). Insurer will limit the claim for this item to RM1,000,000 being the maximum sum insured.
Insurer will not allow the balance amount of RM300,000 from the building sum insured to be used to offset the RM100,000 shortfall under the machinery sum insured.
Maximum claim payable under the policy shall not exceed the total sum insured of all properties insured
Due Observance and Fulfilment of Terms and Conditions:
Failure of the Insured to comply with any of the policy terms and conditions can render the policy null and void.
Examples: failure to advise the change in the occupation of the building or late in notifying the Insurer of a claim, breach of the 60 days premium warranty etc
The Schedule:
Basically, it contain the details of the Insured, the subject matter insured and the clauses/warranties applicable
Examples:
Description of property insured, period of insurance, sum insured, name of Insured, nature of business, construction of building, premium charged and clauses/warranties applicable etc
Next Posting will be on Clauses and their intended application
Friday, August 27, 2010
Insurance Payout for China Air Crash Victims
China:
Chinese life insurers are expected to pay claims of 14.87 million yuan (US$2.19 million) involving those killed in an air crash in northeast China on Tuesday, according to the China Insurance Regulatory Commission (CIRC).
Asia Insurance Review 27/8/2010
Chinese life insurers are expected to pay claims of 14.87 million yuan (US$2.19 million) involving those killed in an air crash in northeast China on Tuesday, according to the China Insurance Regulatory Commission (CIRC).
Asia Insurance Review 27/8/2010
Thursday, August 26, 2010
Insurance Payout for HK Tourists killed in the Philliphines
Hong Kong:
The families of four of the victims killed in Monday's bloody hostage crisis in Manila will receive ompensation totaling up to HK$1,320,000 (US$170,000) for each victim.
The sum comprises a HK$300,000 payout from the insurer of the Hong Kong-organised tour they had been travelling on, a HK$20,000 gratuity from the Hong Kong government, as well as an extra HK$1 million because the four had bought travel insurance from Chartis through the travel agency, Hong Thai, for the tour.
The next of kin of the other four dead victims will receive up to HK$320,000 for each victim.
Asia Insurance Review 26/8/2010
The families of four of the victims killed in Monday's bloody hostage crisis in Manila will receive ompensation totaling up to HK$1,320,000 (US$170,000) for each victim.
The sum comprises a HK$300,000 payout from the insurer of the Hong Kong-organised tour they had been travelling on, a HK$20,000 gratuity from the Hong Kong government, as well as an extra HK$1 million because the four had bought travel insurance from Chartis through the travel agency, Hong Thai, for the tour.
The next of kin of the other four dead victims will receive up to HK$320,000 for each victim.
Asia Insurance Review 26/8/2010
Monday, August 23, 2010
Acquisition of Tahan Insurance
Malaysia: Regulator gives nod to acquisition of general insurance business by
Singapore group.
Bank Negara Malaysia (BNM), the country's central bank which also supervises
the insurance and other financial services sectors, has approved the transfer of
the general insurance business of Tahan Insurance Malaysia to Singapore's
Great Eastern group.
Asia Insurance Review 19/8/2010
Singapore group.
Bank Negara Malaysia (BNM), the country's central bank which also supervises
the insurance and other financial services sectors, has approved the transfer of
the general insurance business of Tahan Insurance Malaysia to Singapore's
Great Eastern group.
Asia Insurance Review 19/8/2010
Thursday, August 5, 2010
Malaysia: Prudential-P&O Merger
Malaysia: Analysts say Prudential - P&O merger may offer mutual synergies.
One of Malaysia's largest non-life insurers, Pacific & Orient (P&O)
Insurance, is seeking Bank Negara's approval to commence talks with Prudential
for the sale of a stake to the UK-headquartered insurance giant. The potential merger
between P&O Insurance and Prudential is likely to result in mutual synergies,
reports The Star newspaper
Asia Insurance Review 5/8/2010
One of Malaysia's largest non-life insurers, Pacific & Orient (P&O)
Insurance, is seeking Bank Negara's approval to commence talks with Prudential
for the sale of a stake to the UK-headquartered insurance giant. The potential merger
between P&O Insurance and Prudential is likely to result in mutual synergies,
reports The Star newspaper
Asia Insurance Review 5/8/2010
Wednesday, August 4, 2010
Malaysia: Insurance claims for stolen vehicles exceeded US$125 mln in 09.
Insurance companies in Malaysia paid out Rm404.7 million (US$127 million) in
claims over stolen private vehicles last year, according to data released by the
General Insurance Association of Malaysia (PIAM). A total of 8,673 private
cars were reported stolen last year throughout the country.
Asia Insurance Review 3/8/2010
P/S:
Now we can see the reason why Insurers are very rigid in the acceptance of
motor insurance.
Suggested Theft Preventive Measures:
1) When Parking your Vehicle:
a) Park at brightly lighted area where it is clearly visible to others
b) Wind up your window, remove the ignition key and lock your vehicle
c) Quality Steering lock be used to secure the steering wheel of the vehicle
d) Do not leave any valuables like computer, handphone etc on the seats
of your vehicle which can attract unnecessary attention from the would be
burglars
e) Ensure your vehicle alarm is maintain in good working condition. Do a
functional test on it regularly and any fault be rectified immediately.
Subscribe to the GPS (Captor Recover & Tracking System) which
is said to have a 99% success tracking and recovery rate
f) Try to park your vehicle next to a more expensive one to divert the burglar's
intent. Example. a Proton Wira parked next to a Toyota Camry 2.4V or
BMW or Benz
g) Try not to leave your vehicle to the jockey to park your car (unless the
jockey service is run by a professional outfit). Your key may be duplicated
without your knowledge. Be careful of the Disclaimer Clause which absorb
them of any blame for theft or damage to your vehicle whilst under their care.
h) Be vigilante at all times. Forget about parking your vehicle at the particular
spot if at all you feel very uncomfortable with the surroundings and the
people around there.
2) When Driving Your Vehicle
a) When driving at odd hours, be alert of vehicle constantly trailing you
from behind. The would be carjackers would purposely bump into your vehicle
forcing you to exit from your vehicle and inspect the damage. It is here that
they will strike by taking over the wheel and driving off with your vehicle and
leaving you stranded, scared and helpless.
b) If you are being trailed, drive to the nearest town or city centre and stop
somewhere where there are lots of people who may come to your aid if
situation demands or to the nearest police station (if you know where) to
force the car jackers to abandon their intent.
c) Do not leave the vehicle engine running without an adult in attendance.
Do not leave your children alone in the car. There are too many cases of
reports where the victim found their vehicle driven off (with the kids as well)
by the car jackers when they went into a shop to purchase sundry,
cigarettes etc.
d) If you are stopped by the police, JPJ Officers whilst driving for a
purported offence at a seculded location, please remember you have the
right to ask to see their authority card for verification. Ensure your door is
lock internally. Do not exit from your vehicle if the so called police or JPJ
Officers cannot produce their AC.There are just too many of these bogus
Officers around. Do not hassle over the offence. Ask for the summon ticket
(if they can produce it) and drive off. Do not attempt to bride them.
d) Be vigilant even when you are opening or closing the auto gate of your
house to park or reverse your vehicle especially early in the morning when
the sky is still dark or when it is already late into the night. If you suspect
something amiss, abandon your intent, and ensure it is safe to do so before
you open/close your auto gate.
IMPORTANT NOTE:
Please note there is a condition called "Due Diligence and Care" attached to
the motor insurance policy. Meaning, as the owner of the vehicle..you and/or
your authorized driver are required to exercise due diligence and care to
protect the vehicle from being stolen or damaged under controlled circumstances.
Some of those suggestions mentioned above are related to this condition.
Insurer reserves the right to reject any claims for theft arising from the failure
of the Insured to comply with this condition
The above are written for members reading pleasure only without any prejudice.
claims over stolen private vehicles last year, according to data released by the
General Insurance Association of Malaysia (PIAM). A total of 8,673 private
cars were reported stolen last year throughout the country.
Asia Insurance Review 3/8/2010
P/S:
Now we can see the reason why Insurers are very rigid in the acceptance of
motor insurance.
Suggested Theft Preventive Measures:
1) When Parking your Vehicle:
a) Park at brightly lighted area where it is clearly visible to others
b) Wind up your window, remove the ignition key and lock your vehicle
c) Quality Steering lock be used to secure the steering wheel of the vehicle
d) Do not leave any valuables like computer, handphone etc on the seats
of your vehicle which can attract unnecessary attention from the would be
burglars
e) Ensure your vehicle alarm is maintain in good working condition. Do a
functional test on it regularly and any fault be rectified immediately.
Subscribe to the GPS (Captor Recover & Tracking System) which
is said to have a 99% success tracking and recovery rate
f) Try to park your vehicle next to a more expensive one to divert the burglar's
intent. Example. a Proton Wira parked next to a Toyota Camry 2.4V or
BMW or Benz
g) Try not to leave your vehicle to the jockey to park your car (unless the
jockey service is run by a professional outfit). Your key may be duplicated
without your knowledge. Be careful of the Disclaimer Clause which absorb
them of any blame for theft or damage to your vehicle whilst under their care.
h) Be vigilante at all times. Forget about parking your vehicle at the particular
spot if at all you feel very uncomfortable with the surroundings and the
people around there.
2) When Driving Your Vehicle
a) When driving at odd hours, be alert of vehicle constantly trailing you
from behind. The would be carjackers would purposely bump into your vehicle
forcing you to exit from your vehicle and inspect the damage. It is here that
they will strike by taking over the wheel and driving off with your vehicle and
leaving you stranded, scared and helpless.
b) If you are being trailed, drive to the nearest town or city centre and stop
somewhere where there are lots of people who may come to your aid if
situation demands or to the nearest police station (if you know where) to
force the car jackers to abandon their intent.
c) Do not leave the vehicle engine running without an adult in attendance.
Do not leave your children alone in the car. There are too many cases of
reports where the victim found their vehicle driven off (with the kids as well)
by the car jackers when they went into a shop to purchase sundry,
cigarettes etc.
d) If you are stopped by the police, JPJ Officers whilst driving for a
purported offence at a seculded location, please remember you have the
right to ask to see their authority card for verification. Ensure your door is
lock internally. Do not exit from your vehicle if the so called police or JPJ
Officers cannot produce their AC.There are just too many of these bogus
Officers around. Do not hassle over the offence. Ask for the summon ticket
(if they can produce it) and drive off. Do not attempt to bride them.
d) Be vigilant even when you are opening or closing the auto gate of your
house to park or reverse your vehicle especially early in the morning when
the sky is still dark or when it is already late into the night. If you suspect
something amiss, abandon your intent, and ensure it is safe to do so before
you open/close your auto gate.
IMPORTANT NOTE:
Please note there is a condition called "Due Diligence and Care" attached to
the motor insurance policy. Meaning, as the owner of the vehicle..you and/or
your authorized driver are required to exercise due diligence and care to
protect the vehicle from being stolen or damaged under controlled circumstances.
Some of those suggestions mentioned above are related to this condition.
Insurer reserves the right to reject any claims for theft arising from the failure
of the Insured to comply with this condition
The above are written for members reading pleasure only without any prejudice.
Tuesday, August 3, 2010
Continuous Professional Development (CPD) Training for GI Agents
Phew!!!! It has been a very tiring but exciting 6 months for me travelling the length of the country to deliver the CPD training to the agency force organized by the various Insurers in the market.
Between January and July 2010, I had delivered the following topics by way of lectures, workshop, groups discussion and presentation:
a) Insurance Design for the SMI/SME and Presentation Skills
b) Developing a Comprehensive Fire Insurance Program
c) Motor Insurance & Claims
d) Miscellaneous Accident Insurance
e) Claims Handling
f) The Perfect Marketing Mix
g) Personal Lines Insurance: Selling, Cross Selling & Upselling
h) Risk Survey from the Agents View point
i) Anti Money Laundering Act 2001
j) Products Disclosure & Transpareny Procedures.
Many questions were raised by the participants during these sessions and I hope to compile them, classes by classes, and post them in my blog very soon.
Looking forward to coming sessions in August 2010 where I will be conducting a half day seminar on Perfect Marketing Mix in KL and Penang.
Chao!!!
Between January and July 2010, I had delivered the following topics by way of lectures, workshop, groups discussion and presentation:a) Insurance Design for the SMI/SME and Presentation Skills
b) Developing a Comprehensive Fire Insurance Program
c) Motor Insurance & Claims
d) Miscellaneous Accident Insurance
e) Claims Handling
f) The Perfect Marketing Mix
g) Personal Lines Insurance: Selling, Cross Selling & Upselling
h) Risk Survey from the Agents View point
i) Anti Money Laundering Act 2001
j) Products Disclosure & Transpareny Procedures.
Many questions were raised by the participants during these sessions and I hope to compile them, classes by classes, and post them in my blog very soon.
Looking forward to coming sessions in August 2010 where I will be conducting a half day seminar on Perfect Marketing Mix in KL and Penang.
Chao!!!
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