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	<title>Malaysia Insurance Online</title>
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	<link>http://www.malaysiainsurance.info</link>
	<description>Malaysia Online Insurance News Portal With A Difference</description>
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	<itunes:summary>Malaysia Online Insurance News Portal With A Difference</itunes:summary>
	<itunes:author>Malaysia Insurance Online</itunes:author>
	<itunes:explicit>no</itunes:explicit>
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	<itunes:subtitle>Malaysia Online Insurance News Portal With A Difference</itunes:subtitle>
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		<title>Malaysia Insurance Online</title>
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		<item>
		<title>New Income Tax Rules A Pain For Insurance And Takaful Agents</title>
		<link>http://www.malaysiainsurance.info/new-income-tax-rules-a-pain-for-insurance-and-takaful-agents</link>
		<comments>http://www.malaysiainsurance.info/new-income-tax-rules-a-pain-for-insurance-and-takaful-agents#comments</comments>
		<pubDate>Sun, 06 May 2012 16:11:50 +0000</pubDate>
		<dc:creator>malaysiainsurance</dc:creator>
				<category><![CDATA[Insurance Practices]]></category>
		<category><![CDATA[Intermediary]]></category>
		<category><![CDATA[Managing]]></category>
		<category><![CDATA[Statutory]]></category>
		<category><![CDATA[Income Tax Act]]></category>
		<category><![CDATA[Insurance Agents]]></category>
		<category><![CDATA[tax]]></category>

		<guid isPermaLink="false">http://www.malaysiainsurance.info/?p=5876</guid>
		<description><![CDATA[It is no great news for the Malaysian insurance agency fraternity…. More income tax coming your way! As announced in the 2012 Malaysian Budget, the proposed new Section 83A of the Income Tax Act 1967 requires every company making payments (monetary or otherwise) to its (insurance and takaful) agents to complete a prescribed form (Form CP58 [2011]) which contains particulars of payment(s), and provide it to the agents by 31 March of the following year. However, in view of the many application glitches arising from this new adoption, insurance companies are given up to 31st May 2012 to issue the yearly statement or CP58 to their agents, and agents are given up to 30th June 2012 to submit their tax returns.
&#160;
 The following pointers are important:

This new Form CP 58 for declaration of insurance agent’s income is to replace the previous CP 32 form and, this takes effect for taxation year 2011 requiring the agent’s insurance principals to declare all benefits that had been given or provided to the agents, whether in monetary or non-monetary forms.

&#160;

The information required in the Form CP58 includes:

(i)    Insurance principal’s information
(ii)   Agent’s information (resident/non-resident)
(iii)  Incentive payment information
(a)  Monetary form
(b)  Non-monetary form

&#160;

Notwithstanding the extension of time [...]]]></description>
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		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Moving Closer Towards Malaysian Competition Act 2010</title>
		<link>http://www.malaysiainsurance.info/moving-closer-towards-malaysian-competition-act-2010</link>
		<comments>http://www.malaysiainsurance.info/moving-closer-towards-malaysian-competition-act-2010#comments</comments>
		<pubDate>Sat, 28 Apr 2012 12:56:59 +0000</pubDate>
		<dc:creator>malaysiainsurance</dc:creator>
				<category><![CDATA[Insurance Practices]]></category>
		<category><![CDATA[Act]]></category>
		<category><![CDATA[Competition]]></category>
		<category><![CDATA[Competition Act]]></category>

		<guid isPermaLink="false">http://www.malaysiainsurance.info/?p=5582</guid>
		<description><![CDATA[Malaysia joins the world’s developed economies with the implementation of the Malaysian Competition Act 2010 from 1 January 2012.
Earlier on we have written on the topic of Competition Act where it was stressed the need for the industry to be tech-driven dealing with any rules and regulations implementation in the era where the promotion of competition is at its highs. Check this out&#8230;. While rules and regulations are good in injecting some level of discipline to the industry, nevertheless, in essence would contain some anti-competitive elements that are frown by the consumers. By managing these rules and regulations using technology it would make our industry more transparent to both government and consumers &#8211; it would separate out what&#8217;s being administrative, technical and competition controls, making matters more open and easier for more in-depth discussion.
Some notable aspects for better understanding for a start&#8230;.
 There are two notable prohibitions under this Act &#124;

anti- competitive agreements and
abuse of dominant positions.

The insurance industry falls under the purview of this Act especially in regards to tariff matters, inter-company agreements, etc. The tariffs are therefore open for review by the Commission enforcing the Act but whether the industry has made the necessary application, we do not know&#8230;. Nevertheless a [...]]]></description>
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		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Understanding Unearned Premium Reserves (UPR) and Unexpired Risks Reserves (URR)</title>
		<link>http://www.malaysiainsurance.info/understanding-unearned-premium-reserves-upr-and-unexpired-risks-reserves-urr</link>
		<comments>http://www.malaysiainsurance.info/understanding-unearned-premium-reserves-upr-and-unexpired-risks-reserves-urr#comments</comments>
		<pubDate>Mon, 12 Mar 2012 15:48:18 +0000</pubDate>
		<dc:creator>malaysiainsurance</dc:creator>
				<category><![CDATA[Claims]]></category>
		<category><![CDATA[Insurance Practices]]></category>
		<category><![CDATA[Premium deficiency]]></category>
		<category><![CDATA[Premium Liabilities]]></category>
		<category><![CDATA[Premium Reserves]]></category>
		<category><![CDATA[Unearned Premium Reserves]]></category>
		<category><![CDATA[Unexpired Risks Reserves]]></category>

		<guid isPermaLink="false">http://www.malaysiainsurance.info/?p=5834</guid>
		<description><![CDATA[What do you understand between Unearned Premium Reserves (UPR) and Unexpired Risks Reserves (URR)?
UNEARNED PREMIUM RESERVES. Simply say and forgetting about the more technical aspect of it, UPR is that portion of premium which is not earned by the insurer, i.e. the amount of premium that relates to the policy period that has yet to be utilised or is still an ongoing concern or being the unexpired future periods of cover. The insurer has to maintain a premium reserve for this unearned period to meet their ongoing obligation to the policy holder. It is normal for insurer to use the 1/24th method for Non-Marine classes and for Marine, it is a norm to provide on basis of 25% of total net (of reinsurance) premium as unearned as at the end of each financial year. You can further read my earlier posting on RISK BASE CAPITAL FOR UNDERWRITER.
All the insurance companies have to maintain the minimum level of ‘unearned premium reserve’ in order to meet the condition set by the insurance regulatory board.
UNEXPIRED RISK RESERVES. Unexpired risk reserve works somewhat similarly like ‘unearned premium reserve’. In the normal workings for setting technical reserves, UPR = URR, however this is likely not [...]]]></description>
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		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Breaching Insurance rules and regulations in the name of profits &#124; Insurance &amp; Takaful Online</title>
		<link>http://www.malaysiainsurance.info/breaching-insurance-rules-and-regulations-in-the-name-of-profits-insurance-takaful-online</link>
		<comments>http://www.malaysiainsurance.info/breaching-insurance-rules-and-regulations-in-the-name-of-profits-insurance-takaful-online#comments</comments>
		<pubDate>Sun, 26 Feb 2012 06:30:08 +0000</pubDate>
		<dc:creator>malaysiainsurance</dc:creator>
				<category><![CDATA[BlogTalk]]></category>
		<category><![CDATA[Managing]]></category>
		<category><![CDATA[foreign workers]]></category>
		<category><![CDATA[foreign workmen]]></category>
		<category><![CDATA[fwcs]]></category>
		<category><![CDATA[fwig]]></category>
		<category><![CDATA[JPI]]></category>
		<category><![CDATA[SKHPPA]]></category>

		<guid isPermaLink="false">http://www.malaysiainsurance.info/?p=5771</guid>
		<description><![CDATA[Are you a supporter of insurance regulation breaches or you are already reaping some rewards from supporting those breaches?
Some insurance practitioners are so ever willing to breach established regulations just to gain a slice of any premium segment deemed strategic &#8211; prior to 2009 insurers were very combative with the motor insurance sectors with much monetary enticements being thrown to the markets but this had stopped since the implementation of the Risk-based Capital (RBC) framework. However in recent times, insurers are targeting the foreign workers insurance segment, i.e., foreign workers compensation scheme (FWCS), foreign workers insurance guarantee (FWIG) and foreign workers hospitalisation &#38; surgery insurance scheme (FWH&#38;SIS or what is more commonly known, SKHPPA&#8230;.). These sectors or segments are viewed as the more profitable one, so intense competition naturally began&#8230;.
So what are those breaches all about?
In short, these are usually in form of enticements (i.e., incentive trips, gifts or even cash or maybe even stock &#38; shares) aimed at intermediaries to motivate them towards channeling those targeted classes of business to insurer. Usually payment is made once the intermediaries successfully meet the premium target(s) within a specified period&#8230;. How these enticement-related payments were made&#8230;. we leave this to your good [...]]]></description>
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		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Stock-throughput insurance coverage in Marine Cargo Insurance</title>
		<link>http://www.malaysiainsurance.info/stock-throughput-insurance-coverage-in-marine-cargo-insurance</link>
		<comments>http://www.malaysiainsurance.info/stock-throughput-insurance-coverage-in-marine-cargo-insurance#comments</comments>
		<pubDate>Sun, 19 Feb 2012 01:35:37 +0000</pubDate>
		<dc:creator>malaysiainsurance</dc:creator>
				<category><![CDATA[Insurance Practices]]></category>
		<category><![CDATA[Marine]]></category>
		<category><![CDATA[Reinsurance segment]]></category>
		<category><![CDATA[Coverage]]></category>
		<category><![CDATA[reinsurance]]></category>
		<category><![CDATA[reinsurance markets]]></category>
		<category><![CDATA[technical underwriting]]></category>
		<category><![CDATA[Underwriting]]></category>

		<guid isPermaLink="false">http://www.malaysiainsurance.info/?p=5782</guid>
		<description><![CDATA[Providing a STOCK-THROUGHPUT INSURANCE COVER or avoiding it?
Excluding stock-throughput coverage in a Marine Insurance reinsurance treaty agreement is a norm.
However, if you check with your peers the exact nature or meaning of what stock-throughput means, nobody seems to be able to explain&#8230;. Some said, there is a prolonged storage extension (i.e., 120 days extension) to the storage after and before the marine voyage. Some commented the voyage involves factory-liked processes or some erection activities being done at some stages of the journey. Yes, they are not wrong with the explanation, however there are more to this.
Stock-throughput extension cover in marine cargo insurance in its original concept was actually about combining a marine transit All Risks policy together with a Stock policy or Warehouse / Storage policy. That&#8217;s as simple as it gets.
Evolving form&#8230;. The concept then expanded over time including turning raw materials shipped into some form of finished (or semi-finished) product during the transit. Usually marine underwriters will only want to provide such extension to very light or soft processes, like non-industrious cutting, sorting and repackaging. But because over a period of time some naïve or half-baked underwriters made stupid mistakes by allowing light manufacturing processes within the journey [...]]]></description>
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		<slash:comments>7</slash:comments>
		</item>
		<item>
		<title>Sanction Clause putting its claws into the Non-Marine Insurance segments</title>
		<link>http://www.malaysiainsurance.info/sanction-clause-putting-its-claws-into-the-non-marine-insurance-segments</link>
		<comments>http://www.malaysiainsurance.info/sanction-clause-putting-its-claws-into-the-non-marine-insurance-segments#comments</comments>
		<pubDate>Mon, 30 Jan 2012 15:28:25 +0000</pubDate>
		<dc:creator>malaysiainsurance</dc:creator>
				<category><![CDATA[BlogTalk]]></category>
		<category><![CDATA[General]]></category>
		<category><![CDATA[Insurance Practices]]></category>
		<category><![CDATA[non-marine sanction]]></category>
		<category><![CDATA[sanction clause]]></category>
		<category><![CDATA[sanction exclusion]]></category>
		<category><![CDATA[sanction limitation]]></category>

		<guid isPermaLink="false">http://www.malaysiainsurance.info/?p=5765</guid>
		<description><![CDATA[
Talents for the country in the making

Sanction Clause on an expansionary mode
I have numerous discussions with my reinsurance brokers as well as my lead reinsurer lately, the main subject was on the appropriateness of sanction clause being imposed in NON-MARINE related treaty reinsurance. Treaty reinsurers are now pushing hard to have the clause inserted into all non-marine treaty. Currently most if not all MARINE related treaty programmes are imposed with Sanction limitation &#38; exclusion clause. In case you do not know what&#8217;s this clause is all about, do read the contents written within this link.
By the way NON-MARINE simply means all insurance classes or portfolio that are not MARINE based, and examples are Fire, Motor, General Accident, Liability, Health and Personal Accident insurances among the major ones.
Impact of the Sanction Clause being imposed on all treaty reinsurance contracts
If reinsurers do have their way then all non-marine related insurance policies would be imposed the sanction clause as part of the policy exclusions. Meaning, any claims having a slightest of connection or relationship with any of those sanctioned countries, items, entities or peoples would be deemed as non payable and the onus of proving otherwise lies with the Insured parties. If the [...]]]></description>
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		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Skim Amanah Rakyat 1Malaysia &#124; Available 30th January 2012</title>
		<link>http://www.malaysiainsurance.info/skim-amanah-rakyat-1malaysia-available-30th-january-2012</link>
		<comments>http://www.malaysiainsurance.info/skim-amanah-rakyat-1malaysia-available-30th-january-2012#comments</comments>
		<pubDate>Sat, 28 Jan 2012 06:57:28 +0000</pubDate>
		<dc:creator>malaysiainsurance</dc:creator>
				<category><![CDATA[BlogTalk]]></category>
		<category><![CDATA[Consumer]]></category>
		<category><![CDATA[1Malaysia]]></category>
		<category><![CDATA[financial]]></category>
		<category><![CDATA[Investment]]></category>
		<category><![CDATA[Investment portfolio]]></category>
		<category><![CDATA[Scheme]]></category>

		<guid isPermaLink="false">http://www.malaysiainsurance.info/?p=5738</guid>
		<description><![CDATA[Introducing the latest SKIM AMANAH RAKYAT (SARA) 1MALAYSIA
The Malaysian government has just launched the Skim Amanah Rakyat (SARA) 1Malaysia, which is offering a 32.16% return per annum on your investment…. something too good to be true perhaps that’s what you would be thinking.  You probably wouldn’t be able to find any investment vehicles in the market right now providing such a high return on investment.
How does this scheme works? 
SARA 1Malaysia is a hybrid of a unit trust investment and a loan product aimed at encouraging low-income earners to save and invest.
ISA


↑ Grab this Headline Animator
1. Invest with your own money. 
The investment is limited to RM5,000 per household and you will receive a dividend of RM134 every month for the next 5 years. In this case, the effective rate of return is more than 30% per annum!
2. Invest with a bank loan (You can take up a a maximum of RM5,000 loan) 
In this case you will still receive a dividend of RM134 every month for the next 5 years but here the bank loan monthly repayment of RM84 needs to be deducted, nevertheless you would still get to enjoy a profit of RM50. The good thing here is, you do not [...]]]></description>
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		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Roles of Insurance Agents &#124; Rules and Regulations Perspectives</title>
		<link>http://www.malaysiainsurance.info/roles-of-insurance-agents-rules-and-regulations-perspectives</link>
		<comments>http://www.malaysiainsurance.info/roles-of-insurance-agents-rules-and-regulations-perspectives#comments</comments>
		<pubDate>Sun, 22 Jan 2012 09:47:48 +0000</pubDate>
		<dc:creator>malaysiainsurance</dc:creator>
				<category><![CDATA[Consumer]]></category>
		<category><![CDATA[Intermediary]]></category>

		<guid isPermaLink="false">http://www.malaysiainsurance.info/?p=5720</guid>
		<description><![CDATA[Are you an insurance agent? Do you know what your roles are in as far as the governing laws are concerned? This may be of interest to you.
Insurance agents must take their role as contracted personnel of an insurer and that someone who solicits and connects a policyholder with the insurer. Therefore the agent has a contractual responsibility to both insurer and policyholder and their representation has heavy legal weightage.
The Malaysian Insurance Act 1996 prescribed an “insurance agent” to mean a person who does all or any of the following:
(a)  solicits or obtains a proposal for insurance on behalf of an insurer;
(b)  offers or assumes to act on behalf of an insurer in negotiating a policy; or
(c)  does any other act on behalf of an insurer in relation to the issuance, renewal, or continuance, of a policy

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The Insurance Act in respect to the formation of an insurance contract, in particular section 151 (1), (2) &#38; (3) on Knowledge of, and Statement by, Insurance Agent, clearly stipulates that the role of an agent is binding by law. Thus, it is imperative agents make it their business to learn and understand what&#8217;s being [...]]]></description>
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		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>2012 New Motor Insurance Premium Framework &#124; Motor Insurance Online</title>
		<link>http://www.malaysiainsurance.info/2012-new-motor-insurance-premium-framework-motor-insurance-online</link>
		<comments>http://www.malaysiainsurance.info/2012-new-motor-insurance-premium-framework-motor-insurance-online#comments</comments>
		<pubDate>Sat, 14 Jan 2012 16:43:11 +0000</pubDate>
		<dc:creator>malaysiainsurance</dc:creator>
				<category><![CDATA[Consumer]]></category>
		<category><![CDATA[Motor Insurance]]></category>
		<category><![CDATA[Motor Tariff]]></category>
		<category><![CDATA[Bank Negara]]></category>
		<category><![CDATA[Motor Insurance Matters]]></category>
		<category><![CDATA[transport & haulage]]></category>

		<guid isPermaLink="false">http://www.malaysiainsurance.info/?p=5703</guid>
		<description><![CDATA[New Motor Insurance Premium Framework &#124; How are your motor insurance premium computed and How much more are you going to pay for your motor insurance in 2012?
Get the answers here&#8230;.
In case you do not know, starting this 16th January 2012 the Malaysian Insurance industry will be imposing some small increases to your existing motor insurance premium. These prescribed increases are applicable for the year 2012 but with gradual increases till 2016 when the motor insurance premium structure would by then be liberalised. Don&#8217;t worry about the increases, these are really very small amount and in the process would enable customers to purchase their insurance requirements with much ease. Here are the schedules of the premium increases, applicable whether you are purchasing comprehensive, third party fire &#38; theft or third party insurances. The additional premium listed are subject to both loading and no-claim-bonus discount. However these are NOT applicable for purchases made at Malaysia Motor Insurance Pool (MMIP).
If you are an agent or insurance practitioner you may opt-in for the more detailed premium framework below&#8230;.// < ![CDATA[
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		<slash:comments>3</slash:comments>
		</item>
		<item>
		<title>2011 Bank Negara Malaysia&#8217;s Guidelines &amp; Circulars &#124; Malaysia Insurance News</title>
		<link>http://www.malaysiainsurance.info/2011-bank-negara-malaysias-guidelines-circulars-malaysia-insurance-news</link>
		<comments>http://www.malaysiainsurance.info/2011-bank-negara-malaysias-guidelines-circulars-malaysia-insurance-news#comments</comments>
		<pubDate>Sat, 31 Dec 2011 04:44:50 +0000</pubDate>
		<dc:creator>malaysiainsurance</dc:creator>
				<category><![CDATA[Insurance Practices]]></category>
		<category><![CDATA[Managing]]></category>
		<category><![CDATA[Bank Negara]]></category>
		<category><![CDATA[Bank Negara Malaysia]]></category>
		<category><![CDATA[BNM]]></category>
		<category><![CDATA[circular]]></category>
		<category><![CDATA[Guidelines]]></category>
		<category><![CDATA[Insurance Act]]></category>
		<category><![CDATA[Managing Change]]></category>

		<guid isPermaLink="false">http://www.malaysiainsurance.info/?p=5669</guid>
		<description><![CDATA[Auld Lang Syne 2011 and Happy New Year 2012!
We are arriving at the doorsteps of 2012, so Malaysia Insurance Online wishes to thank you guys for faithfully arriving at our site in 2011 and hope you guys would be likewise doing so faithfully for the new year 2012. But, please do it with zest and be active commenting on the blogposting&#8230;. as we need feedbacks for further improvement.
Taking this opportunity we have some GUIDELINES, CIRCULARS &#38; some CONCEPT PAPERS issued (or amended) by Central Bank of Malaysia (BNM) in 2011 posted here for your reading pleasure. Hopefully you will find them useful, especially for agents and independent insurance practitioners&#8230;. We cannot post any of the BNM&#8217;s attachments here for reasons you already knew, however, if you seriously require them do register your interest below or email us directly.
And&#8230;. DO NOT FORGET TO CLICK ONTO OUR ADVERTISEMENTS IN SUPPORT OF THIS PORTAL.

Guidelines to Responsible Financing






Effective Date




The Guidelines : 1 January 2012
Paragraph 6.18 : 18 November 2011
Paragraphs 8.2, 8.3 &#38; 8.4 : To both new and existing customers by 1 July 2012
Paragraph 8.6 : Payment allocation requirement for financing products other than credit card facilities : 1 July 2012








Applicability



Applicable to the following [...]]]></description>
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		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Salary Increment in 2012 &#124; The Malaysian Perspectives</title>
		<link>http://www.malaysiainsurance.info/salary-increment-in-2012-the-malaysian-perspectives</link>
		<comments>http://www.malaysiainsurance.info/salary-increment-in-2012-the-malaysian-perspectives#comments</comments>
		<pubDate>Mon, 19 Dec 2011 11:07:50 +0000</pubDate>
		<dc:creator>malaysiainsurance</dc:creator>
				<category><![CDATA[Grapevine]]></category>
		<category><![CDATA[Managing]]></category>
		<category><![CDATA[Bonus & Increment]]></category>
		<category><![CDATA[insurance salary]]></category>
		<category><![CDATA[pay structure]]></category>
		<category><![CDATA[salary scale]]></category>

		<guid isPermaLink="false">http://www.malaysiainsurance.info/?p=5642</guid>
		<description><![CDATA[Salary Review and Promotion for the Insurance and Takaful Industry &#8211; Predicting it for 2012




Reviewing some of my previous writeup on salary increment and promotion, did some serious checks on market salary (+pay package) comparison lately and having gone through an extensive appraisal review recently on staff performance I think I can further add on to what&#8217;s to come for the year 2012. And that&#8217;s on top of those writeups available over the web currently&#8230;.
&#8220;Do you think a 4% to 7% increment for 2012 is reasonable? Why?&#8221;
Most of the organisations involving with Human Resource functions are quick to point out an average increment of 4% to 7% for 2012 payscale (do note this is in respect of Malaysian payscale and is for all major industry), an indication of a much higher increment compared to what&#8217;s available back in 2011 and 2010. However these organisations were quick to point out the much lower bonus payout for 2011 and also likelihood for 2012.  I am not going to name those organisations though, it would be best if you could google the web for some insight&#8230;. It is also good to note that this relatively higher average increment is also results of companies factoring adjustments for cost-of-living expenses.

The Increment Aspects
The recent appraisal that I have had [...]]]></description>
		<wfw:commentRss>http://www.malaysiainsurance.info/salary-increment-in-2012-the-malaysian-perspectives/feed</wfw:commentRss>
		<slash:comments>0</slash:comments>
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		<title>Overseas Insurance Coverage &#124; Overseas Locations and Contingency Business Interruptions</title>
		<link>http://www.malaysiainsurance.info/overseas-insurance-coverage-overseas-locations-and-contingency-business-interruptions</link>
		<comments>http://www.malaysiainsurance.info/overseas-insurance-coverage-overseas-locations-and-contingency-business-interruptions#comments</comments>
		<pubDate>Mon, 28 Nov 2011 16:41:24 +0000</pubDate>
		<dc:creator>malaysiainsurance</dc:creator>
				<category><![CDATA[Insurance Practices]]></category>
		<category><![CDATA[Large & Specialised Risks]]></category>
		<category><![CDATA[Flood]]></category>
		<category><![CDATA[reinsurance]]></category>
		<category><![CDATA[reinsurance markets]]></category>
		<category><![CDATA[Suppliers Extension]]></category>
		<category><![CDATA[technical underwriting]]></category>

		<guid isPermaLink="false">http://www.malaysiainsurance.info/?p=5627</guid>
		<description><![CDATA[Is your company providing coverage extension for overseas location? What about extension for Customers&#8217; premises and Suppliers&#8217; premises in respect of Business Interruption or Consequential Loss Insurance cover?
The recent massive flooding in Thailand has caused havoc to reinsurers operating within the region. Expected insurable losses amounted to some USD19.5 billion (Thailand&#8217;s Office of Insurance Commission).
Issues relating to Solvency Margin and Inadequacy Capital
Many Thai insurers are already facing solvency problem with shares prices tumbling. Some of the major reinsurers are also facing capital adequacy ratio (CAR) issues, at least two of those reinsurers licensed under the Malaysian Insurance Act were required by the authority to top up their paid-up capital in order to meet the SCAR and ICAR. CCR, a French reinsurer has officially issued circular pulling out from the Thai New Zealand and the Australian markets.


An Overview Of 2011 &#8211; A Massive Thailand Flooding

Flood cover is no longer an automatic inclusion in any of the Thai insurers&#8217; insurance policy&#8230;. as of now. 
Reinsurers are now putting flood extension under scrutiny as they do not want to have any event relapse subsequent to the recent one. Many commented that this flooding event was really a country problem that the Thai government must make significant efforts to resolve. [...]]]></description>
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		<slash:comments>6</slash:comments>
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		<title>Insurance Companies: Putting Generalists Above Specialists for Technology Transformation Project</title>
		<link>http://www.malaysiainsurance.info/insurance-core-system</link>
		<comments>http://www.malaysiainsurance.info/insurance-core-system#comments</comments>
		<pubDate>Sun, 30 Oct 2011 16:18:00 +0000</pubDate>
		<dc:creator>malaysiainsurance</dc:creator>
				<category><![CDATA[BlogTech]]></category>
		<category><![CDATA[Managing]]></category>
		<category><![CDATA[ICT transformation]]></category>
		<category><![CDATA[insurance core IT]]></category>
		<category><![CDATA[IT Project]]></category>
		<category><![CDATA[Technology]]></category>

		<guid isPermaLink="false">http://www.malaysiainsurance.info/?p=5365</guid>
		<description><![CDATA[Insurance Companies and Takaful Operators &#124; In Technology Transformation Project
I read K. Ram Sundaram&#8217;s article on Why It Is Important To Put Generalists Above Specialists for Your Technology Transformation Project at Insurance &#38; Technology website with interest for I tend to think there are elements of truth to what he had opined in that article. Let me rewrite certain part of his article and perhaps with some of his quotable quotes from the perspectives of my own experience dealing with the execution of major IT system implementation&#8230;.
Fine-grained specialists are often uniquely qualified to support and maintain the carrier&#8217;s status quo Information Technology (IT) platforms. Unfortunately, they are also just as uniquely unqualified to manage and execute a major upgrade or change to those platforms.
Having sat through last week meeting to discuss the replacement of the company&#8217;s existing core backend system that everyone was fast to determine that the system has reached its limit and unlikely for it to achieve newer things in time to come. Usually IT personnel don&#8217;t tell the decision makers as to the exact reasons for the change for much of those reasons given were more along the following lines of argument:

The system is already old and running on a 3rd generation (3GL) platform thus it is difficult to recruit [...]]]></description>
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		<slash:comments>0</slash:comments>
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		<title>Insurance Companies Snooping on Twitter and Facebook Accounts?</title>
		<link>http://www.malaysiainsurance.info/claims-investigation-over-twitter-and-facebook</link>
		<comments>http://www.malaysiainsurance.info/claims-investigation-over-twitter-and-facebook#comments</comments>
		<pubDate>Sun, 16 Oct 2011 14:54:53 +0000</pubDate>
		<dc:creator>malaysiainsurance</dc:creator>
				<category><![CDATA[Claims]]></category>
		<category><![CDATA[Consumer]]></category>
		<category><![CDATA[Insurance Practices]]></category>
		<category><![CDATA[Facebook]]></category>
		<category><![CDATA[insurance fraud]]></category>
		<category><![CDATA[Personal Data Protection Act]]></category>
		<category><![CDATA[social media]]></category>
		<category><![CDATA[twitter]]></category>

		<guid isPermaLink="false">http://www.malaysiainsurance.info/?p=5568</guid>
		<description><![CDATA[In US and Europe markets it is already a common thing for insurers to check various information of individual by &#8220;snooping&#8221; on to the social media platforms as a form of intelligence gathering. Insurers use of social media for anti-fraud purposes is no more a violation of privacy than the way other companies use such information for marketing and other purposes. The problem is that the concept of what is public and private has changed, and technical advances have outstripped the way people think about what is public and what is private. What individuals choose to share publicly is their prerogative and once shared it is very difficult to argue on gounds of invasion of privacy. 

&#8220;Getting worried over your twitter and facebook accounts being snooped upon?&#8221; 

However, as of now snooping on our social media postings is not a norm so no worry but we may not know for sure&#8230;. Hope the following video makes great viewing perhaps picking up a point or two&#8230;.
&#160;
]]></description>
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		<slash:comments>0</slash:comments>
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		<title>Buying Your Motor Insurance with Passenger Liability Extension Cover?</title>
		<link>http://www.malaysiainsurance.info/passenger-liability-insurance</link>
		<comments>http://www.malaysiainsurance.info/passenger-liability-insurance#comments</comments>
		<pubDate>Sun, 09 Oct 2011 15:30:36 +0000</pubDate>
		<dc:creator>malaysiainsurance</dc:creator>
				<category><![CDATA[BlogTalk]]></category>
		<category><![CDATA[Consumer]]></category>
		<category><![CDATA[Insurance Coverage]]></category>
		<category><![CDATA[Insurance Practices]]></category>
		<category><![CDATA[Motor Insurance]]></category>
		<category><![CDATA[Statutory]]></category>
		<category><![CDATA[Coverage]]></category>
		<category><![CDATA[liability to passengers]]></category>
		<category><![CDATA[Motor Insurance Matters]]></category>
		<category><![CDATA[Motor Third Party Bodily Insurance claims]]></category>
		<category><![CDATA[Passenger Liability]]></category>
		<category><![CDATA[technical underwriting]]></category>

		<guid isPermaLink="false">http://www.malaysiainsurance.info/?p=5540</guid>
		<description><![CDATA[This posting is about Legal Liability to Passengers (LLP) or in simple term, “Passenger Liability” – talks about what’s being covered and what’s not, including the insurers’ obligation under the Road Transport Act (RTA) to cover passenger liability in identified situation and circumstances.
&#160;
When I first wrote a posting on Passenger liability: Your kids are not covered……. a year ago little did I know there would be more than 1,600 over hits on this. There were lots more comments than the 21 comments found on that posting. Many people including agents emailed directly to my inbox for clarification including feeling cheated…. by the no liability cover to family members while traveling as passengers. I guess people are now realising that their family members, especially their kids are not covered while they are traveling as passengers in their car despite having purchased a passengers’ liability (or legal liability to passengers) extension cover.
&#160;
Many were amazed that despite purchasing the Legal Liability to Passenger (LLP) extension cover, the coverage is actually worse off than the basic coverage!
&#160;
Even if this is not an issue the difficulty in understanding the coverage and exclusion part of legal liability to passengers within the Malaysian motor insurance context is indeed [...]]]></description>
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		<slash:comments>13</slash:comments>
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		<item>
		<title>What is Sanction Limitation and Exclusion Clause? What are the Implications?</title>
		<link>http://www.malaysiainsurance.info/sanction-clause</link>
		<comments>http://www.malaysiainsurance.info/sanction-clause#comments</comments>
		<pubDate>Sat, 10 Sep 2011 10:59:27 +0000</pubDate>
		<dc:creator>malaysiainsurance</dc:creator>
				<category><![CDATA[Insurance Coverage]]></category>
		<category><![CDATA[Insurance Practices]]></category>
		<category><![CDATA[Marine]]></category>
		<category><![CDATA[Reinsurance segment]]></category>
		<category><![CDATA[Statutory]]></category>
		<category><![CDATA[marine insurance]]></category>
		<category><![CDATA[marine underwriting]]></category>
		<category><![CDATA[reinsurance]]></category>
		<category><![CDATA[reinsurance markets]]></category>
		<category><![CDATA[sanction]]></category>

		<guid isPermaLink="false">http://www.malaysiainsurance.info/?p=5473</guid>
		<description><![CDATA[The Sanction Clause as what Malaysian insurers called it has effectively found its place in the industry on 1st April 2011.
What exactly is this Sanction Limitation and Exclusion Clause or Sanction Clause in short?
This Sanction Clause had on 1st April 2011 found its place in the Malaysian insurance industry especially where marine related policies were concerned. Most foreign insurers seemed to have steadfastly adopted this clause in particularly Japanese dominant insurers, however, most local dominant insurers then were spared from this Clause simply because most of their treaty reinsurance leaders (especially those Malaysian owned reinsurers) were prepared to give leeways for not inserting this as part of the treaty programme.
&#160;
However after 1st July this year the adoption of Sanctions Clause seems to have reached another milestone, most Cargo insurance policies issued to international shipments are now slammed with the clause.
What cause the Clause adoption to spread throughout the Malaysian markets?
Simply put, Malaysian reinsurers that hold sizeable shares of the local reinsurance market are now slapped with the Sanction Clause when their retrocession programme came up for renewal this year &#8211; meaning, the flexibility to waive in the past is no longer there. The foreign reinsurers operating in the country saw the opportunity and sealed the Clause adoption across the reinsurance [...]]]></description>
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		<slash:comments>9</slash:comments>
		</item>
		<item>
		<title>An Insurance Dilemma in Non-disclosure, Misrepresentation or Concealment of Material Facts</title>
		<link>http://www.malaysiainsurance.info/insurance-material-facts</link>
		<comments>http://www.malaysiainsurance.info/insurance-material-facts#comments</comments>
		<pubDate>Sat, 27 Aug 2011 13:56:13 +0000</pubDate>
		<dc:creator>vkliew</dc:creator>
				<category><![CDATA[BlogTalk]]></category>
		<category><![CDATA[Claims]]></category>
		<category><![CDATA[Consumer]]></category>
		<category><![CDATA[Grapevine]]></category>
		<category><![CDATA[Insurance Practices]]></category>
		<category><![CDATA[concealment]]></category>
		<category><![CDATA[illicit sex]]></category>
		<category><![CDATA[material facts]]></category>
		<category><![CDATA[misrepresentation]]></category>
		<category><![CDATA[misstatement]]></category>
		<category><![CDATA[non disclosure]]></category>

		<guid isPermaLink="false">http://www.malaysiainsurance.info/?p=5444</guid>
		<description><![CDATA[Issues of non-disclosure, concealment or misrepresentation of Material Facts
A common confrontational piece between insurer and assured - in the guise of non-disclosure, misrepresentation or concealment of material facts, which in this case (outlined below) under discussed here was about the health aspects of the life assured. She bought the insurance without declaring that she has anemia&#8230;.. there was no medical checkup since sum assured was below the threshold. She subsequently passed away due to a heart attack, nothing to do with anemia&#8230;.. but happened after less than a year from the date of contract the insurance cover.
The insurer threw the claim out for non-disclosure and may even consider reporting the son for intention to defraud. Of course the son argued that her mother&#8217;s nemia condition had nothing to do with heart attack that was the actual cause of her death. 

Read the August 26th article below&#8230;

Are the underwriters able to identify possible non-disclosure of this anemic condition based on the information as provided in the proposal form if they did indeed put in the effort?
Shouldn&#8217;t the insurance company examine her before contracting the life cover? The amount was RM200,000 and it is not unusual for the company to insist on a medical examination for a simple reason&#8230;. her age. I [...]]]></description>
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		<slash:comments>2</slash:comments>
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		<title>Safety Supervisor, made compulsory for construction site</title>
		<link>http://www.malaysiainsurance.info/safety-supervisor-for-project-insurance</link>
		<comments>http://www.malaysiainsurance.info/safety-supervisor-for-project-insurance#comments</comments>
		<pubDate>Sun, 21 Aug 2011 00:24:16 +0000</pubDate>
		<dc:creator>vkliew - blogging from land below the wind</dc:creator>
				<category><![CDATA[BlogTalk]]></category>
		<category><![CDATA[Insurance Practices]]></category>
		<category><![CDATA[Statutory]]></category>
		<category><![CDATA[CAR]]></category>
		<category><![CDATA[construction projects]]></category>
		<category><![CDATA[Contractor All Risks]]></category>
		<category><![CDATA[EAR]]></category>
		<category><![CDATA[erection all risks]]></category>
		<category><![CDATA[fwcs]]></category>

		<guid isPermaLink="false">http://www.malaysiainsurance.info/?p=5440</guid>
		<description><![CDATA[It is welcome news for the insurance industry that Site Safety Supervisor is a requirement at construction sites. No doubt this should improve safety at site for workers specifically and ensure safety for the public in general but unsure how this implementation could improve claim ratios for insurer in respect of Contractor&#8217;s All Risks, Erection All Risks, or construction plant &#38; machinery Insurance policy.
Site Safety Supervisors are definitely not going to be concern of indiscriminate digging, safety designs, suitability of architectural, whether correct technology is being utilised&#8230;.or whatever! Their focus is more of immediate safety of the workers on site, and really not so much about securing the properties at site that insurers are more concerned of.
Anyway they are certain to be junior staff category &#8211; not privy to a lot of technical and management stuff&#8230;.therefore also not decision makers as well. So, how the heck they are going to improve things for insurers at site?
Nevertheless, despite whatever shortfalls it should be a good starting point for all &#8211; as insurers we have one more pair of eyes on safety at site, at least to ensure no fire and explosion, no storage of combustible and harmful materials which could pose [...]]]></description>
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		<slash:comments>1</slash:comments>
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		<item>
		<title>Overseas Tax on Reinsurance Premium ceded to Foreign Reinsurers</title>
		<link>http://www.malaysiainsurance.info/reinsurance-overseas-tax</link>
		<comments>http://www.malaysiainsurance.info/reinsurance-overseas-tax#comments</comments>
		<pubDate>Sat, 06 Aug 2011 04:28:23 +0000</pubDate>
		<dc:creator>vkliew</dc:creator>
				<category><![CDATA[Insurance Practices]]></category>
		<category><![CDATA[Reinsurance segment]]></category>
		<category><![CDATA[Statutory]]></category>
		<category><![CDATA[overseas tax]]></category>
		<category><![CDATA[reinsurance]]></category>
		<category><![CDATA[reinsurance tax]]></category>
		<category><![CDATA[tax]]></category>
		<category><![CDATA[technical underwriting]]></category>

		<guid isPermaLink="false">http://www.malaysiainsurance.info/?p=5425</guid>
		<description><![CDATA[Overseas tax applicable on reinsurance premium
This writeup is really for those who are engaged in reinsurance functions; treaty and facultative alike.
It is normal for us to charge a 1.25% (back in 2007 and before we charged 1.40%) on the amount of premium reinsured to foreign insurers. We were so used to imposing this tax levy whenever we have dealings with foreign reinsurers, unless they have a branch licensed to operate within Malaysia &#8211; like Munich Re and Swiss Re, with the transactions booked at the said branch&#8230;.
Conveniently we understand this as tax matter and therefore a domain of our Finance department&#8230;. we gave no thoughts to it until we received a request from a fresh-faced foreign reinsurer to enlighten them as to such an application. You see&#8230; this reinsurer has a domestic branch but the treaty was contracted with their Head Office domiciled in Europe with their Singapore branch mentioned as the managing office. Their Malaysian office played no part in the operations of the contract, save for those prescribed downstream activities&#8230;. which also have nothing to do with the reinsurance contract.
Upon checking with the finance department we then realised they too did not quite remember which part and section of the [...]]]></description>
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		<slash:comments>4</slash:comments>
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		<item>
		<title>National Insurance Assists for Motor Insurance Policyholders</title>
		<link>http://www.malaysiainsurance.info/national-assists-for-motor-insurance-accident</link>
		<comments>http://www.malaysiainsurance.info/national-assists-for-motor-insurance-accident#comments</comments>
		<pubDate>Sat, 30 Jul 2011 04:51:36 +0000</pubDate>
		<dc:creator>malaysiainsurance</dc:creator>
				<category><![CDATA[BlogTalk]]></category>
		<category><![CDATA[Consumer]]></category>
		<category><![CDATA[Insurance Practices]]></category>
		<category><![CDATA[Motor Insurance]]></category>
		<category><![CDATA[Changing Times]]></category>
		<category><![CDATA[Insurance Assists]]></category>
		<category><![CDATA[Motor Insurance Matters]]></category>
		<category><![CDATA[National Insurance Assists]]></category>
		<category><![CDATA[Road Assists]]></category>

		<guid isPermaLink="false">http://www.malaysiainsurance.info/uncategorized/national-assists-for-motor-insurance-accident</guid>
		<description><![CDATA[National Motor Insurance Assists for all to be set up under the New National Motor Insurance Framework?
Setting up a National Motor Insurance Claims Assists Center for the purpose of providing prompt services immediately at the time of accident&#8230;. Perhaps this is a great idea or maybe just something the industry needs to do to get some small increases in Motor Insurance premium come 2012?
Couple of days ago Telekom Malaysia made a presentation to PIAM attended by numerous committee members representing the Motor sub-comm and the Claims sub-comm as well staffs from both ISM and PIAM. It was a RM6.8 million (payable over a period of 5 years) proposal on a claims response center setup for the industry. As usual this does not include various incidental charges along the way.
The centre is in a nutshell proposed to cater for:

emergency response engagements
filtering crank calls
a linkup to ISM database for acquiring Insured&#8217;s vehicle details and insurer related info
diverting filtered calls to identified insurer(s)&#8217; own Road Assist for despatch of tow truck and accident assistance to scene of accident
provide geolocation information including compiling relevant accident related info for downstream claims handling and investigation

A RM6.8m system for doing small things?
&#8220;What is this linkup with ISM to acquire Insured&#8217;s [...]]]></description>
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		<slash:comments>3</slash:comments>
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