Just got this from FPAM…

This year’s most important conference on Islamic financial planning.

IFPC 2009 Malaysia – International Center for Islamic Wealth Management

Sign-up before 15 October and save RM200. Earn 10 CPE points from SIDC and 10 CE points from FPAM.

Details

Date: 9 & 10 November , Monday & Tuesday

Venue: Sime Darby Convention Centre, Kuala Lumpur

Fee:

i) Early Bird Special ??RM800 ( FPAM Member) , RM1000 (Public)
ii) Normal ??RM1000 ( FPAM Member) , RM1200 (Public)

Early Bird Special by 15 October 09

Conference background
The significant rise in the wealth of Islamic countries for the past four decades has provided tremendous opportunities of growth and expansion for the wealth management industry to manage the surplus funds in accordance with the Shariah principles. Interestingly, the growth in the Islamic wealth management industry comes not only from affluent Muslims who desire to see their wealth preserved and enhanced within the framework of Shariah law, but equally from non-Muslim who view this as an ethical mode of investment and diversification. This 2-day conference has been specifically designed to contribute to the development of Malaysia as an international centre for Islamic wealth management as well as to explore the opportunities, latest trends and developments in the Islamic financial planning and wealth management industry. This conference will enable participants to learn from key players and prominent speakers who will share with you some very thoughtful and sometimes very challenging ideas and experiences.

Speakers
Dato??Nik Ramlah Mahmood, Managing Director, Securities Commission

Shariffuddin Khalid, Director, Malaysia International Islamic Financial Centre

Shahrul Shahriman, Chief Officer, Private & Institutional Asset Management, Prudential Fund Management Bhd

Azman Ismail, Chief Executive Officer, Independent Islamic Financial Planners Sdn Bhd

Dr. Ismail Mohd @ Abu Hassan, Shariah Adviser, Mayban Islamic Berhad

Ali Abbas Zaidi, Managing Director and Head of Islamic Markets, Maybank Investment Bank

Gul Khan, Global Head of Wealth Management, HSBC Amanah

Samer Taki, Senior Vice President, Islamic Bank of Asia, Singapore

Badlisyah Abdul Ghani, Chief Executive Officer, CIMB Islamic

Zainal Izlan Zainal Abidin, Chief Executive Officer, i-VCAP Management Sdn Bhd

Zainudin Ishak, Chief Executive Officer, HSBC Amanah Takaful

Khaeruddin Ishak, CEO HSBC Amanah Takaful

Md Khairuddin Haji Arshad, General Manager, PIDM

Dato??Dr. Adnan Alias, Managing Director/ Chief Executive Officer, Islamic Banking and Finance Institute Malaysia (IBFIM)

Dato??Zukri Samat, Managing Director, Bank Islam Malaysia Berhad

Datuk Kamaruzaman Che Mat, Chief Executive Officer, Bank Rakyat

Musa Abdul Malik, Chief Executive Officer, HSBC Amanah Malaysia Berhad

Mohd Nasiruddin Mohd Kamaruddin, Chief Operating Officer, Standard Chartered Saadiq Malaysia

For programme and registration form:
http://www.fpam.org.my/fpam/wp-content/uploads/2009/08/ifpc-brochure-8.pdf

Online registration available at: www.i-fpc.com

Via InsuranceOnline.my

Mistake 1: Did not contact the Insurer during an emergency

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Here’s the latest press release from Great Eastern:

PRESS RELEASE
For immediate release

Kuala Lumpur, 19 August 2009 ??Great Eastern Life Assurance (Malaysia) Berhad?? Director and Chief Executive Officer Mr Koh Yaw Hui informed that as a good corporate citizen with a hundred and one years??presence in Malaysia, Great Eastern will cover hospitalization claims made by its policyholders, who have been hospitalized due to influenza A (H1N1).

??his pandemic disease is distressing for our community. We would like to dispel all uncertainties on hospitalization claims by affirming that Great Eastern will compensate our policyholders who have been hospitalized for treatment of influenza A (H1N1),??assured Mr Koh.

Similarly, Mr. Koh in his capacity as a Director of Overseas Assurance Corporation (Malaysia) Berhad (??ACM??, would also like to take the opportunity to assure the policyholders of OACM who have been hospitalized due to influenza A (H1N1), that they will be accorded similar treatment.

Mr Koh urged the public to adhere to the authorities??request to take precautionary measures to prevent further spread of this disease by practising isolation should one feel ill or show symptoms of influenza A (H1N1), to curb further spread of this deadly disease.

Mr. Koh added, ??reat Eastern and OACM have constantly briefed our employees on influenza A (H1N1) in relation to insurance claims. We have also taken the initiative to communicate regularly with our employees and our agency force on this pandemic so that we are able to serve our policyholders on a timely basis.??/blockquote>

Here’s another announcement by Etiqa:

(The Edge, 21st August) KUALA LUMPUR: Etiqa will pay the claims made by its medical and health plans??policyholders should they be hospitalised for treatment for H1N1 influenza, with immediate effect.

Etiqa said on Aug 21 the H1N1 influenza can affect everyone physically and also financially, in terms of the medication and treatment.

Its CEO and director Datuk Aminuddin Md Desa said in this difficult time, it decided to extend the cover of H1N1 influenza to its medical and health plans and ensure that claims are paid to policyholders hospitalized and treated for the H1N1 influenza.

Etiqa is extending the cover for H1N1 influenza treatment and hospitalisation to its group and individual medical and health plans. This H1N1 coverage benefit is extended to all current policyholders of Etiqa?? medical and health plans and any new policyholders who will be joining the plan from now on.

Here’s another press release from Life Insurance Association of Malaysia (LIAM), the Insurance Industry’s self-regulatory body:

Life Insurance Coverage for Influenza A(H1N1) – Press Release

Kuala Lumpur, 21 August 2009: The Life Insurance Association of Malaysia (LIAM) has confirmed that death due to the Influenza A(H1N1) will be payable. In addition, all the 16 life insurance companies under LIAM will also be paying claims arising from hospitalization due to Influenza A(H1N1). Even though a majority of the medical policies carry exclusion on communicable diseases requiring quarantine by law, life insurers are responding to an immediate need of the nation in light of the increasing number of people who have been infected.

Life insurance companies will nonetheless continue to monitor the Influenza A(H1N1) situation. In the event of any review of this decision on life insurance coverage, the policyholders will be duly informed.

I should think that all insurers that provide Hospitalisation benefits should be made mandatory by Bank Negara to extend their coverage to include H1N1.

I have not read about PIAM’s take on H1N1 claims, but some of the travel insurance packages offered by General Insurers are already providing limited benefits to H1N1-related compensations and expenses.

The battle of the premium rebate continues, with Perwakim holding a peaceful picket last Tuesday…

Via InsuranceOnline.my…

(Business Times) PERWAKIM, an association of general insurance agents in Malaysia, has submitted a memorandum to Bank Negara protesting the central bank?? proposal to give rebates on premiums for consumers that renew their motor insurance directly with insurance firms.

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

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

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

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

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

If you’ve missed the previous rounds, here’s a summary of what happened so far:

1) BNM has approved General Insurance companies in Malaysia to give premium rebates to direct customers.

2) Direct customers would meant customers who approach the General Insurers directly (walk-in, through the internet, direct mailing and the telemarketing channel). In short, any method that does not go through sales agents or intermediaries.

3) The beef of the issue mainly lies with the motor insurance rebate, as this was ‘once’ considered the iron rice bowl for most agents. What happened was after the premium rebate was approved, customers who renew their motor insurance directly will receive 5% premium rebate in the first year of implementation and 10% thereafter.

4) For other types of general insurance products, the General Insurers are given flexibility by BNM in the rate of premium rebates.

If you haven’t read about my previous take on the issue, you can head over here: Duit Kopi.

Today, I would like to re-look into this issue from another perspective.

These general insurance agents did not get all worked up for nothing. There’s some element of betrayal here. Yes, for some consumers, these agents might not have deserved the 10% extra premium, but I would say that for any agents serious in the general insurance business, most of them are providing much better service from say, a typical General Insurer’s front-line customer service consultants or helpline operators. Imagine trying to get an answer from these front-line customer service consultants on the market value or to get a quotation for your vehicle. And compare this with a general insurance agent who is not under the direct payroll of the General Insurer. I can safely bet that the latter will be relatively more responsive and efficient. Most of everyone I know have had bad experience with 1800 customer service numbers.

Another aspect that was overlooked by the authority on the implementation of this premium rebate is the compensation for loss of income. Sure, it’s arguable and almost impossible to determine the value of these general insurance agents in soliciting businesses for the General Insurers, but what about the existing customer base that these hardworking general insurance agents have built for these General Insurers. How is the new premium rebate compensating for the historical loyalty of these agents? Yes, you can argue again that if the agent’s service is good, the customers are most likely going to stick around, but who’s to say otherwise? Malaysians being Malaysians, it’s very common to see customers throwing out loyalty out the window the moment they see the word ‘DISCOUNT’. In Malaysia, it’s easily one of the most emotional phrase after ‘FREE’. So, what is the authority’s policy on the compensation of businesses lost incurred directly on the once loyal sales force?

The next issue is about ethical and fairness. How is the agent able to compete fairly with the General Insurer? Imagine a supplier marketing their product directly to the consumers. What’s going to happen to the retailer? Okie, that might not be a good analogy, since you can always debate that the retailer who don’t add value should never have existed in the first place. But remember again, these retailers has been marketing the supplier’s product since the beginning of time. And suddenly the supplier just decided to cut into the scene, without any form of compensation and even offering rebates that will wipe off the entire retailer network. I can smell a commercial lawsuit coming up. The least these General Insurers could do is to offer the same pricing, without premium rebate and play the game like an ethical sportsman.

That’s my piece of mind. I think the General Insurers are taking these general insurance agents for a ride by providing double pricing and standards on their products, and BNM being the respected Regulatory Body should have taken more time before implementing this policy, ensuring it’s a win-win situation.

Recently, there has been quite a racket over the decisions made by general insurance companies in Malaysia. Some insurers have recently decided that it’s time they cut out the middleman, and pass the savings down to the consumers directly.

Individuals who purchase general insurance covers directly from insurance companies will be eligible to receive premium rebates, effective July 1, 2009, said Bank Negara. The quantum of the rebates will depend on the type of insurance covers purchased, it said.

The central bank said on June 19 that for motor insurance, individuals will receive 5% premium rebate in the first year of implementation and 10% thereafter. For others, including businesses, insurance companies would have the flexibility of providing the rebates. The direct purchase includes walk-in, through the Internet, direct mailing and the telemarketing channel.

Source: The Edge Daily, 19th June 2009

And middleman being who they are, predictably made a huge furor over the issue.

PROTON Dealers Association Malaysia (Peda) said the direct rebate for motor insurance will “destroy” the automotive eco-system, particularly the dealers network.

The association warned insurance companies that it will call for a boycott if the proposal is implemented.

The proposal came from the General Insurance Association of Malaysia (Piam) and was approved by Bank Negara Malaysia via a circular dated April 17.

My take? If you are not providing any value-added services, then you shouldn’t expect to stay in the food chain. Period.

Citing unemployment and a weakening automative eco-system as the main reasons why these dealers should continue to receive commission revenue sounds totally irrelevant to the paying customers. There’s a term for this: ‘leeching’. PEDA even mentioned about boycotting the proposal. In my opinion, this is a very childish reaction to the situation. Maybe they haven’t read about Seth Godin’s take on middleman.

The Government should intervene and defer the implementation of direct rebates for motor insurance as this will increase unemployment in the country.

State Unity, Human Resources, Science, Technology and Innovation Committee chairman M. Asojan said the direct rebates would affect the livelihood of thousands of insurance agents nationwide.

??he Government is working hard to ensure that people have jobs during the economic crisis and the last thing we need is a mass lay-off in the insurance sector,??he told The Star here.

Asojan, a former insurance agent, said he understood the plight of the thousands of agents nationwide.

He said the agents provided an array of services including helping with claim forms, advising clients on what to do in road accidents, providing contacts on the nearest workshops and checking on the status of claims.

??re insurance companies ready with more counters to handle the influx of motorist from July 1???he aked.

Asojan pointed out that it was the insurance companies??responsibility to assist the Government in ensuring people had jobs, especially when the Government was trying to kick-start the economy with the two stimulus plans.

??as there a study done before the General Insurance Association of Malaysia and Bank Negara decided to implement the move?

??hat about the consequences of this move on the thousands of agents who have helped the industry???he said, adding that it should be implemented after taking into account the views of all the parties.

Source: Ministry of Human Resource, 3rd June 2009

For general insurance agents who rely heavily on car insurance premium businesses as part of their revenue channel, this is sure a good time to re-think your strategies. If you think about it, with rising claims and a revenue share of only 10% with the General Insurer, car insurance is probably not one of the best product to focus on in the near term. Maybe one can start looking through your existing car insurance customers and cross sell other relevant products such as fire and burglary insurance, personal accident plans or even travel insurance plans. Yes, although these products are not ‘compulsory’, but the margin is much higher. It’s definitely better than complaining about how unfair the world is.

While we’re on the car insurance issue, recent trend in the industry has it that several general insurers are shunning away from 3rd party car insurance coverage. A third party car insurance coverage basically means you are only protecting your vehicle against claims on others people damages. In a 3rd Party accident, if you are at fault, your victim will be compensated by your Insurer, while you are to fork out your own money on your own repairs. Unless you are very confident with your driving skills, it’s always better to cover your vehicle with ‘Comprehensive Cover’. The reason why some people still opt to cover their vehicle with 3rd Party coverage is mainly because their vehicles are almost as valuable as scrap metal (for instance, there’s not much reason for you to cover a 20 year old Proton Saga with a Comprehensive Coverage). Yes, the difference between 3rd Party Cover and Comprehensive Cover is quite significant. Most companies, in order to save cost, especially during such trying economic times, would prefer to take the risk and save up the extra premium money to provide better cash flow for their businesses.

On the same issue, a few general insurers are also implementing premium loadings on certain risk factors, for example, drivers aged 29 years old and below will be required to pay 15% extra on premium, which I find it a very unfair use of statistics and an obvious desperate act by insurers to ensure profitability.

Bank Negara is studying the possibility of reviewing the ??ariff-based??insurance system for motor vehicles that had been effective since 1978 and replace it with a ??isk-based??system, said Deputy Finance Minister Datuk Dr Awang Adek Hussein. He said on June 16 the proposal was to ensure a level playing field in the motor vehicle insurance industry, it should have a more sustainable system where insurance premiums were based on risk instead of being controlled by tariffs, adding that Malaysia was one of the few countries that adopted the ??ariff-based??system.

He also said while the tariff-based insurance system recorded RM4.5 billion gross premiums for motor vehicles last year, the profits by insurers following underwriting performance were minimal as Malaysia had a high loss ratio of 80.9% as compared with Thailand (60%), China (68%) and Indonesia (70%). ??his means for every RM1, some 81 sen goes to claims. This has caused many insurance players to be less able,??Awang told the Dewan Rakyat yesterday when replying a supplementary question by Chong Chieng Jen (Bandar Kuching ??DAP) Chong had wanted to know whether the central bank had taken any steps to act on insurers that compelled old motor vehicles owners to purchase personal accident policy besides the ??irst party??or ??hird party??insurance policy.

Source: The Edge, 16th June 2009

It also somehow escape these authorities that if there are proper law enforcements on certain institutions, the motor insurance business need not be in such a sorry state. Here’s a few examples I can think of which could improve the situation:

1) Ensuring all drivers are fit to drive. This is a no-brainer. Yes, you might think that everyone who ‘graduated’ from the JPJ driving schools would automatically be able to handle the steering wheels. If you have been on Malaysia roads long enough, you should know by now it’s not the case. If JPJ would stop distributing ‘lesen kopi’ (driving license obtained through bribing the driving instructor), I think we could really see a huge drop in the number of claims almost immediately.

2) Ensuring all road offenses are legally penalized and with some sort of a merit-based system. Right now, almost all Malaysian drivers are able to escape from an official summon by utilizing ‘duit kopi’ (fees paid under table to the authorities). A merit-based system would also ensure offenders are kept out of the road. If there’s proper law enforcement on the road, we should see another drastic drop in the number of claims.

3) On the commercial side, law enforcement should be beefed up to ensure non-roadworthy vehicles are taken out of the road. If you travel along the North-South PLUS highway often, the sight of over-turned and overloaded trucks is so common that they almost formed part of the scenery. Apparently, our Road ransport Department is not aware about how these truck companies bypass their routine roadworthy checks.

4) Giving more perks to safe drivers. The maximum Non-Claim Discount (NCD) is now set at 55%, which I think is not enough to encourage Malaysians to be more courteous on the road. I think every driver would welcome a higher rate of NCD, at least 65% and also some other benefits like free towing services or a minimal amount of Personal Accident insurance.

5) Authorities should be held liable also for lousy road conditions and bad road sign placements. If you have drived in the Klang Valley, it’s easy to understand how badly placed most of the road signs are, and it’s also becoming almost impossible to distinguish between an official road sign and a commercial billboard. Another failure in corporate governance. A friend who recently ran over a pot hole with his brand new Suzuki Swift damaged his entire gearbox, which cost him RM20,000 for a full replacement!

The authorities need to go down to the root of the problems. Pooling every Malaysian drivers into the equation is definitely not going to improve things.

There’s just too much caffeine in the system.