10 charges, two courts for one insurance scam

JOHOR BARU: An unemployed man had 10 charges against him in two magistrate’s courts here over an insurance scam involving more than RM1.2mil. Chong Chee Seng, 46, from Taman Soon Chong, in Chaah, Segamat, was alleged to have committed the offences from 1992 to 2002. He pleaded not guilty to all the charges. He was alleged to have committed the offences against two insurance companies at 101, Tingkat 1, Pan Global Plaza, Jalan Wong Ah Fook in Johor Baru, Johor. He was alleged to have submitted false death certificates, burial permits, police reports, attending physician’s statements and medical reports under the names of 10 people. He was also accused of cheating the insurance companies into making policy payouts over the alleged deaths of the policyholders. He was charged with five counts in each of the two magistrate's courts he was brought to. In the first court presided by magistrate Rasidah Roslee, the offences involved a sum totalling more than RM751,000. Rasidah fixed bail at RM39,000 for all the five charges. In the second court presided by magistrate Nor Shahid Abd. Malik, the sum involved in the charges was more than RM499,400 and bail was fixed at RM27,000. Both Rasidah and Nor Shahid fixed March 26 trial. The accused failed to post bail.


13 December 2007, By The Star

EPF announces details for housing loan monthly instalment withdrawal

14-12-2007: EPF announces details for housing loan monthly instalment withdrawal
by Lim Yu Min
Email us your feedback at fd@bizedge.com

KUALA LUMPUR: The Employees Provident Fund (EPF) on Dec 14 laid out details for the housing loan instalment monthly withdrawal that was first announced by Prime Minister Datuk Seri Abdullah Ahmad Badawi in Budget 2008 last September.

Effective Jan 1 next year, EPF contributors can withdraw from their Account II to finance home purchases, it said in a statement.

It said EPF contributors with a minimum balance of RM600 in their Account II could withdraw their savings to make monthly payments towards their housing loans, adding that the minimum monthly withdrawal is RM100 for a period of not less than six months, whilst the maximum amount for monthly withdrawal should not exceed the total monthly housing instalment

It said the savings in Account II allocated for this withdrawal cannot be used for other withdrawals. Members must also be below the age of 55, and do not have any housing loan arrears.

The EPF said the payments will be made directly to members’ personal bank accounts on monthly basis.

It said that the EPF will revoke this monthly instalment withdrawal and members will not be eligible to apply for a similar withdrawal in the future in the event of the following:

• Members have a non-performing loan with a financial institution.
• Loans have been revoked/redeemed.
• The house has been sold/auctioned/transferred to another party.
• Members who are convicted of cheating by submitting fraudulent documents/information for this withdrawal.

Currently, members are allowed to withdraw from their Account II for the purpose of building or purchasing a house and settling their housing loan.

EPF said the conditions for the withdrawal are as follows:

• Members must either be the purchaser or builder and the borrower as well as owner of the house or shop house with a dwelling unit.
• Members should have an existing housing loan from an approved financial institution.
• The house has been mortgaged and fully disbursed by the financial institution.
• Withdrawals are applicable for any houses subject to one house for each member, and it is not limited to the same house from previous withdrawals. However, subsequent withdrawals are only allowed for the same house.
• Other forms of refinancing besides housing are not allowed for this withdrawal.

“Members intending to withdraw for the first time are required to complete EPF 9P (AHL) form and provide certified true copies of their identity card with either their bank books or account statements which are still active, confirmation letter on balance of housing loan, sales and purchase or house construction agreement, housing loan approval letter, mortgage form and title deed or deed of assignment."

“For subsequent withdrawals, members need only complete the EPF 9P (AHL) form and submit copies of their identity card together with their bank books or account statements which are still active, and also the latest confirmation letter on balance of housing loan,” it said.

For more information, visit the EPF website at www.kwsp.gov.my.

by theedgedaily.com

LIAM Calls For Higher Tax Relief For Medical Insurance - Bernama

KUALA LUMPUR, Sept 4 (Bernama) - The Life Insurance Association of Malaysia (LIAM) has called on the government to consider increasing the current RM3,000 tax relief for child education and medical insurance to RM6,000.

According to the association, the current RM3,000 tax relief is not sufficient for a family to plan for their children's education needs and healthcare requirements.

"With the rising costs of education and medical treatment, Malaysians should be encouraged to take up financial planning," it said in a statement Tuesday.

LIAM said the combined tax relief of RM6,000 for life insurance/takaful premiums and contribution to the Employees Provident Fund (EPF) was inadequate.

The association proposed that a separate tax relief be given solely for life insurance premiums.

LIAM also proposed that private pension schemes be established by the government to enable the working population to plan for their retirement.

"The aim is to assist Malaysians to achieve financial independence after retirement. Relying on EPF savings alone is insufficient as retirees would have to ensure their life-time savings could last another 20 to 30 years," the association said.

"There is also a large group of self-employed (about 25 percent of the working population ) who may not have any retirement savings," it added.

Another proposal by LIAM called on the government to review the tax structure of life insurance business by removing the eight percent tax paid by policyholders.

"This is to make life insurance a competitive savings/protection plan compared to unit trusts and bank deposits which are generally tax-free," the association said.

-- BERNAMA

Implement National Health Insurance Carefully, Says Chua

KUALA LUMPUR -- The National Health Insurance Scheme, as proposed in the Ninth Malaysia Plan, has to be implemented carefully to ensure it is accepted by people at all levels of society, Health Minister Datuk Seri Dr Chua Soi Lek told the Dewan Rakyat Thursday. He said while the scheme was proposed with a noble intention to offset the high medical cost borne by the government and the people, the ministry was aware of the implications and obstacles from financing of the scheme. "Planning for the scheme will take into account studies commissioned by the government, inputs and feedback from various parties, including from the public and private sectors and non-governmental organisations. "The government is also studying various models, including experiences of foreign countries," he said in his written reply to Datuk Suhaili Abdul Rahman (BN-Labuan). The scheme, whose implementation mechanism and date have not been finalised, would provide the people better access to medical treatment and help check spiralling medical costs, he said. "The scheme will also provide more flexibility and freedom in opting for the preferred healthcare either in the public or private sector," he said. While the national insurance scheme was compulsory for all Malaysian citizens and permanent residents, the people would not be prevented from buying private health, accident or life insurance, he said. The government would ensure nobody was deprived access to quality, efficient and comprehensive healthcare, he added.

25 October 2007, By BERNAMA

Alliance to open four northern branches

By V. CHANDRASEKARAN

PENANG: Alliance Bank (M) Bhd is capitalising on the country’s buoyant economy to open up four new branches in the northern region, soon including one in Penang.

Three branches would be opened in 12 months.

Group chief executive officer and director Datuk Bridget Lai said each branch would cost about RM2mil to set up and require more than 20 staff.

She said the investment climate in the country was conducive for banks to grow and Alliance was taking advantage of the positive market trends.

Foreign investors were reacting positively to the country’s economic growth, she said after opening the bank's new flagship branch here yesterday.

Bridget Lai launching the flagship branch in Penang

“Our country is on the right track and we have a very big base of commercial customers and entrepreneurs, especially in the northern region.

“Our experience shows we have huge opportunities to expand,” she said.

She said the bank’s focus would be on small and medium entrepreneurs.

On the new flagship branch, she said the bank had spent about RM3.5mil to refurbish and set up.

The branch, which was the bank's hub for the northern region, would house the first Alliance Bank Privilege Banking Centre and Business Centre in Penang, she said.

“This signals the state’s growing importance as a business and high network centre for the bank,” she said.

“Penang is one of the most established industrialised states in Malaysia with thriving small and medium entrepreneurs and Alliance Bank will contribute to the island’s continued growth,” she said.

The flagship branch offers facilities like a 24-hour e-Banking lobby and a customer sales and service lobby.

Alliance Bank, a wholly owned subsidiary of Malaysian Plantations Bhd, has seven branches in the northern region, including four in Penang.

Higher loading by two motor insurers - MAA Assurance and AmAssurance cite high claims, falling car values

22 June 2007, By The Star By DALJIT DHESI

PETALING JAYA: Malaysian Assurance Alliance Bhd (MAA Assurance) and AmAssurance Bhd are believed to be raising their motor insurance premiums, citing high claims, declining car value and a surge in labour costs.

It isy learnt that the two large insurers have already sent circulars to their respective agents informing them of the higher loading on motor premiums.

Sources told StarBiz that the revised loading would take effect at MAA Assurance by end-June and at AmAssurance next month. A higher loading meant increased motor premiums.

AmAssurance, where privately owned cars compose more than 90% of the portfolio, has not previously imposed any comprehensive loading but has done so for third-party coverage about six months ago.

As for MAA Assurance, it imposed loading on commercial vehicles and third-party motor coverage at the start of the year.

Loading structure now comprises comprehensive and third-party coverage with a fixed ceiling attached.

Currently, the two players each command close to 15% of the local motor insurance market. Among the motor insurance players, Kurnia Insurans (M) Bhd is the largest with about 30% market share.

Sources said the planned increase in loading would be in line the current practices of insurance companies, which is based on the age of the vehicle, age of driver and claims history.

An official at Kurnia said the company was still studying the matter and assessing the market before deciding on the premium loading. He did not give further details.

The official said Kurnia's third-party premium loading came into effect on June 1. For comprehensive loading, the most recent hike was about two years ago but it was not across the board.

“We expect other insurance companies with significant motor portfolios to raise premiums in the next few months. According to Bank Negara statistics, the claims ratio in the motor business last year exceeded 71%.

“If one were to add distribution costs and administrative expenses, the combined ratio on motor business would exceed 95%, hence leaving very little margin for insurance companies,” a source said.

An insurance company official said his firm was looking at imposing higher comprehensive loading, based on its claims experience.

“Motor claims ratio at the company increased to 75% in March 2007 from 66% in March 2006. We also feel that most of the other players in the industry are suffering the same fate.

“The company's high claims ratio is largely due to the increase in the frequency of accidents and severity of claims cost per accident, particularly involving younger drivers.

“The situation has been made worse by the drop in the market value of cars and the increase in labour costs,” the official said.

An MAA Assurance official said because of increased auto theft cases and poor car sales values, individual companies may impose higher loading.

“It is estimated that close to 25% of MAA Assurance's auto claims comprise theft and we foresee higher motor premiums, moving forward,'' he noted.

More actuaries needed - The Star

KUALA LUMPUR: More actuaries are urgently needed to ensure the successful implementation of the risk-based capital framework (RBC) and other regulatory policies in the insurance industry, Actuarial Society of Malaysia president Raymond Lai said.

He added that this was because there were a lot of processes, risks, stochastic modelling and other technicalities involved in the implementation of the RBC that only actuaries had the expertise to handle.


Scheduled to be implemented by 2009, the RBC would enhance insurers' risk-management practices and make them more accountable for the products they sell, he said.


It would also provide them the flexibility to launch innovative products and improve capital efficiency as well as boost public confidence.

"Many people do not know what an actuary's main role and responsibility in the insurance industry are. An actuary uses his technical skills to price insurance products and estimate the liabilities of the company.


"In general, he helps ensure that the financial condition of the insurer remains stable, strong and solvent," Lai said in an interview.


According to Lai, of the 51 actuaries currently registered with the society, 42 are working in Malaysia. In the next five years, it expects to register 100 more actuaries.


He said the number of actuaries in Malaysia was very small compared with other countries. For example, Hong Kong had more than 1,000 actuaries and Australia about 3,000.


With more insurers including takaful players coming into the market, demand for these professionals was expected to further rise.


Takaful companies had recently been issued with appointed actuary guidelines, although general insurers had yet to receive one, but would in the near future head in the same direction, he added.


The main challenge facing the profession was the acute shortage of experienced and skilled actuaries as many were working abroad due to better remuneration and benefits, he noted.


Apart from the pull factor, other reasons are the lack of awareness and the arduous journey to obtain full qualification.


The shortage of such professionals would consequently lead to slower development and growth of the industry.


Lai said Singapore, Hong Kong, Taiwan, China and Australia were some of the countries in which Malaysian actuaries tended to work.

To boost the number of actuaries, the society was continuously promoting actuarial science, especially at education fairs and college talks, Lai said.