Life Insurance Malaysia

The life insurance industry will experience encouraging growth next year spurred by the current low penetration rate of 42.8 per cent, said the Malaysian Insurance Institute.

Chief executive officer Khadijah Abdullah said 12 million policies were issued for the year ended 2010 in a country of 28.3 million people.

"By 2020, the penetration rate for life insurance is projected to reach 75 per cent," she said at the Bumiputera Life Insurance Agents Convention 2011 and presentation ceremony for Bumiputera Agency Managers and Top Personal Producer awards here today.

Some 940 bumiputra life insurance agents attended this year's convention themed "Agents -- Catalyst for Insurance Development."

Khadijah said insurance agents hold 53 per cent of the distribution channels in the life insurance sector, followed by the banking sector at 38 per cent and broker and direct customer channels with 3.8 per cent and five per cent respectively.

Meanwhile, Life Insurance Association of Malaysia past president Adnan Zain said the life insurance industry, which normally outperforms the gross domestic product, is dominated by a mix of foreign and local players.

Life Emergency Fund

"It's humiliating for me to ask for public donations for my cancer treatment," admits ailing actress Azean Irdawaty. "But I don't have a choice. My medical bills cost RM30,000 a month and I'm the major breadwinner in the family."

The Malay movie queen, who is now bedridden, is battling stage four cancer. The cancer has already spread to her spinal chord, according to her doctor.

"I tried going to a government hospital, but they mistreated me," she claims. "So I'm in Beacon because a fan, who is a doctor here, is kind enough to sponsor my treatment for a week."

Her huge financial burden is made up of CyberKnife (the latest radiosurgery treatment for tumours), endless medication, private nurses, physiotherapist, adult diapers and legal fees for her troubled son - actor Benjy - who was arrested on suspicion of drug abuse last year.

But Azean, well loved for her charisma as an actress - playing everything from a haughty Datin to HIV-positive patient to jilted wife - is not one to weep in self-pity.

Despite being confined to her hospital bed in Beacon Hospital in Petaling Jaya, Selangor, the 61-year-old displays strong fighting spirit, saying "I am not the type to lament and ask ‘Why me?’ I choose to stay positive. I want to feel good. I like to celebrate every single moment of my life."

Azean refuses to look sick - so much that she insists on wearing make-up in the hospital!

"When I was first diagnosed with stage three breast cancer in 2007, the doctor said I had only two years to live and asked me to write a will," she recollects with a laugh. "But I told him I had asked God for another 20 years. And I'm still around."

Generous fans who wish to help Azean can bank in their donations to her RHB Bank account: 16240100009490.

He's My Brother

Two young boys walked into a pharmacy one day, picked out a box of tampons and proceeded to the checkout counter.

The man at the counter asked the older boy, "Son, how old are you?"
"Eight," the boy replied.

The man continued, "Do you know what these are used for?"

The boy replied, "Not exactly, but they aren't for me. They're for him. He's my brother. He's four.

We saw on TV that if you use these you would be able to swim and ride a bike. Right now, he can't do either."

Complaints on Life Insurance

Many people are at a loss when it comes to applying for a health and life insurance policy. A critical illness cover is no different. This type of insurance provides a single, lump sum payout should the insured become critically ill or injured as defined in the policy’s language.

But there is a catch: insurance companies do not just grant critical illness cover to any or everyone who applies.

Taking out a critical illness insurance might not be the most pleasing thing to go shopping for, but at least it’s practical, especially if your mortgage or business depends on you being fit enough to work.

The premise is that you’ll receive a payout from your insurer, depending on how much you pay them, for a diagnosis of a critical illnesses within six core areas: heart attack, kidney failure, major organ transplants, multiple sclerosis, stroke and cancer.

So imagine how you’d feel if you did get cancer, but your insurer said it didn’t count – which is what happened to Sally Wong*.

In addition to being told she has cancer, Sally also found out she’s not going to receive any of the financial support she thought she’d paid for after being diagnosed with an early form of breast cancer called Ductal Carcinoma In Situ (DCIS).

This is when a non-malignant tumour has been found, which has the potential to become malignant and spread, but because it’s caught early it is still contained.

Sally took two critical illness policies out with an insurance company in 2001, costing RM500 a month and was diagnosed with DCIS in March 2006, and it was explained to her that her form of cancer, while still in the “in situ” phase, was also high-grade and therefore likely to become invasive. If this was allowed to happen, she would stand a low chance of survival.

She was given immediate surgery to remove the lump, followed by radiotherapy treatment to reduce the chance of the cancer spreading. An important factor in ensuring against this was to rest and recuperate. Fortunately, Sally had taken out a critical illness policy to protect her from having to work.

Or so she thought.

An impossible situation
Sally’s claim was rejected because the type of cancer she had was excluded from her policy. The insurance company told her that the medical information for her illness did not support a valid claim.

She recalls: “When I read the policy, not knowing very much about cancer, I thought of it as one disease – I didn’t know it comes in different forms – and I didn’t know what in-situ meant. It was explained to me that it was a type of cancer that hasn’t progressed to the type that could kill me – yet – and they don’t cover you for this.”

Sally took her case up to the Finance Ministry, but they told her they felt that the documentation was clear, and therefore were unable to uphold her complaint against the insurance company.

The women that get DCIS are put in an impossible position – they need to have the necessary treatment to remove it before it invades, but in doing so won’t receive the money they need, because their critical illness policy only covers them if it spreads.

That means if the cancer hadn’t been detected, and had spread, she could have received a payout.

Instead, Sally was forced back to work soon after her first diagnosis – and unfortunately was diagnosed with DCIS again in December 2007.

“When I was told I had in-situ again I thought to myself, ‘I can’t afford to have this – what’s my family going to do’? I felt desperate – I was told I needed months off work. You even end up thinking if it had invaded, at least I wouldn’t be a financial burden,” she added.

Because it had returned, they took no chances and removed the breast completely. However, complications with her skin healing following the mastectomy led Sally to need a further eight operations, leaving her physically unable to work.

“I feel that I’ve never fully gained my strength and can only do a fraction of what I could before I had my mastectomy. It’s a disabling amputation – one that leaves you totally incapacitated – but I’m never going to get any money.”

A standard practice
The fact is, it’s a standard practice across the industry to exclude carcinomas in-situ – cancers that haven’t yet invaded surrounding tissue. Insurers maintain they’re only able to offer cover for the conditions which are generally considered to be immediately life-threatening – and because screenings for breast cancer find cancers before they reach a life-threatening stage, they say this means they don’t count it as a critical illness.

An insurance agent who declined to be named offered this explanation, “Cancer in-situ is specifically excluded from the critical illness cover offered by many insurance companies because there’s a good possibility that cancer at this early stage will respond to treatment.

“All customers are given a ‘key facts’ document which lists the high level conditions that are covered by our policy, but not all types of these conditions are covered. This document also tells customers where to find full descriptions of the conditions covered.

“We’re committed to ensuring that our customers understand what they’re buying and we feel it’s up to the whole industry, including insurance companies and advisers, to help customers understand their cover.”

It all seems very unjust to Sally who said, “One type of insurance is telling me I don’t have a critical illness but when I want to take out holiday insurance they won’t cover me because my condition is considered critical. Is it not critical that you have a breast removed? I’ll die if I don’t. That’s pretty critical in my book.”

Azlina Firzah Abd Aziz, consultant breast surgeon at the Pantai Medical Centre (Breast Care Centre) sheds some light on the ways insurance companies work.

“Carcinoma in-situ is a growth that is in the original site and although it hasn’t broken through the lining, it does not mean it is not cancer. It just means that it has not gone beyond the point of origin.

“It is still cancer. What I don’t understand is insurance companies not covering carcinoma in-situ.”

On breast cancer, she said, there are also some insurance companies which say that claims are only accepted for advance stage breast cancer – not even stage one or two is accepted for claims.”

*Not her real name

Great Opportunities - Insurance

New business premiums for life insurance were lower by 1% to RM4.7 billion (jan-Jul 2010) following the decline in ordinary life by 8.6% (to RM3.4 billion) due to lower sales of whole life, endowment and temporary products.

New premiums for investment-linked products grew 24.3% to RM1.4 billion (Jan to Jul 2010)

Market penetration rate for life insurance increased from 41.5% (end of December 2010) to 44.9% (end of July 2011) suggesting more Malaysian are purchasing life insurance policies.

Do Business

Ruben wrote that Malaysia needs more entrepreneurs but more importantly, those who do it for the right reasons. People venture into business for various reasons, most of which seem right at that point in time. There are also entrepreneur wannabes who don't quite have a good reason nor a clue on how to start a business but they do it nevertheless. Then there are employees who feel they are better than their bosses and are solely responsible for all the profits. So, why not venture out on their own?

But that's not to say going into business on your own is a walk in the park. Entrepreneur Rahimah says there's significant pressure to meet and manage employee expectations, particularly during an economic downturn. The only upside, she says, is the cost of living and salaries. That's also when entrepreneurs may wish they were employees all over again.

I greatly admire failed entrepreneurs who bounce back and return as employees. The need to put food on the table for the family far outweighs an individual's ego.

I would like to dedicate one of my future columns to failed entrepreneurs. If you have a story to share with me on your actual experiences or viewpoints, please do. It would serve as a valuable lesson for entrepreneur wannabes. Who knows, we could prevent heartbreak by sharing our miseries.

If you choose to be an entrepreneur, your reasons to take the plunge may differ based on several factor; age and life experiences can be defining factors. Just like marriage, you need to be persistent in your courtship. Pre-marital involvement is when you are young and carefree without family commitments. If you're lucky, your marriage into business may already be pre-arranged by your parents. Divorce sets in when you decide to leave your employment and start afresh on your own. In the twilight years, you look for ways to keep busy when your kids leave the coop.

Tan Sri Vincent Tan persistently wrote to McDonalds for many years before he transformed himself from an insurance agent into the “burger king of Malaysia.” The millions he made initially were reinvested many times over, and in my book, he is Malaysia's Top Serial Entrepreneur. Nobody, in my memory, has bought, sold, re-bought and re-sold more companies than Tan.

“Pre-marital” entrepreneurs are typically young graduates who fall in love with the idea of being in business. At that raw age, all opportunities appear good. That was how it was for me. My humble background had nurtured the drive in me to have my own business and make zillions. I jumped at the first opportunity at the age of 24-plus to start my first trading company and I spent the next five years all at sea due to inexperience and immaturity.

Fortunately, some deals worked out and I made my first million at 33. I started out selling razor blades and 26 years later, am selling lipsticks for a living. Not much progress in terms of building this massive business conglomerate that I had earlier envisioned. But my little brand has made many cheer-leading schoolgirls happy and many women beautiful at affordable prices. Silkygirl might not be as big as Windows and Facebook, but it is comforting to know that Bill Gates and Mark Zuckerberg, like me, were pre-marital entrepreneurs. The main difference is that they are Harvard dropouts, while I graduated from University Malaya and proudly so.

“Pre-arranged” entrepreneurs are usually overseas graduates who return home and are faced with the tough choice of joining the family business. It is easier to decide if your Dad owns Genting, IOI, Berjaya, YTL, Naza, IGB, Westport, etc. There are many pre-arranged entrepreneurs who have grown their family businesses many times over because they are better educated than their old men, and they have bigger and more qualified teams of managers to support them. But are they better entrepreneurs than their dads?

I have many friends who earn six- to seven-figure annual salaries with all the corporate perks, who never once thought of going into their own business. That is, until they come face to face with a new boss ... from “hell.” And more often than not, it always happens when you are past 45. You know, “been there, done that” and suddenly this know-it-all monsieur decides that you are past your sell date.

So, you may end up considering a corporate divorce and at the same time getting into your own business, especially when alternative employment is limited and unattractive. At this point, certain regrets may creep in; you wish you had planned better much earlier or made some part-time investment in properties or businesses with friends.

There is no law to forbid you from being a part-time investor just because you are happy being a full-time employee. But you need to be disciplined and invest from a very young age instead of spending extravagantly on holidays and the cool must-haves and must-dos. And you need to have a survival plan just in case.

Twilight entrepreneurs are normally retirees who want to keep themselves busy. My advice is to keep your investment low so that you do not suffer too much upon exit, as the reason to exit may just be around the corner. Just last night, The Star's group chief editor advised that my columns can be compiled into a book (like his) and I went to sleep dreaming of my lucrative post-retirement syndicated columns and best-sellers on amazon.com. Then I woke up. It's again time for a reality check.

● The writer is an entrepreneur who, through this weekly column, hopes to share his experience and insights with readers who want to take that giant leap into business but are not sure if they should. Email him at thtan@alliancecosmetics.com

Annuity RM3,000 Tax Relief

The Life Insurance Association of Malaysia (LIAM), believes the new tax relief of up to RM3,000 on contribution to a Private Retirement Scheme and insurance annuity for 10 years will augur well for the industry.

Whilst lauding the Prime Minister’s ‘budget for the rakyat’, such an incentive is indeed a good start by the government in recognising the need for suitable retirement planning, said LIAM.

The introduction of the Private Retirement Scheme will ensure that people who retire will be able to live without over-relying on their EPF savings.

As statistics have shown, the life span of average Malaysians
are getting longer, thus astute retirement planning at an early age would be a step in the right direction.

Whilst LIAM lauds this move to ensure private sector employees and the self-employed have sufficient savings upon retirement, the tax relief of RM6,000 on life insurance premiums paid by individuals is still combined with the statutory EPF contribution.

It is hoped that the separate RM6,000 tax relief for insurance premium will be realised in the near future,” said LIAM in its statement issued today.

"The tax relief of RM3,000 accorded to insurance annuity shows that the Government recognises the importance of insurance annuity, as lump sum has been proven to be an ineffective way for retirement planning, exhausting too early while not addressing longevity risk.

Whilst the tax exemption on investment income of Private Retirement Fund is given, so as not to erode the accumulation of the fund, it’s unfortunate that the same is not accorded to insurance annuity.

The current 8% tax on investment income of annuity fund would result in lower annuity amount and LIAM hopes that the government would consider the removal of such taxation.”

The industry also welcomes the announcement of the increase in the retirement age from 58years to 60 years for the public sector. It is hoped that the private sector would follow suit as employees would be able to accumulate more savings for their golden years.

Empowering Oneself

In a world that has been overwhelmed by mismanagement, greed and unnecessary waste, it’s now more important than ever that we help re-build our world in a positive way. By implementing practices that are designed to empower our lives, we not only change ourselves, we change the world!

Integrity
One of the qualities that true ‘world-shapers’ value highly is integrity. Walking our talk means that our words and actions align and we deliver. Often this means clearing our slate from past negative experiences which frees our mind and emotions to move forward positively.

You will then be open to attaining a deeper, richer and more fulfilling experience of life. Now, more than at any other time in history, you have the opportunity to thoroughly assess your life and to become greater than you ever imagined.

Awareness
Self-awareness is setting your intentions with clarity. No matter what it is you do in life, you’re either living ‘awake’ or ‘asleep’ to your daily thoughts, words and actions. By choosing to set your intentions clearly each day, you actually set a standard or expectation that affects you every moment of the day. This is the essence of living with purpose.

Intention leads to action - either positive or negative – so choose your intention with care. Break your intentions into segments with affirmative statements such as: “Today I intend to feel magnificent.” “Today I intend to radiate love.” “Today I intend to express gratitude.”

Leadership
By living with integrity and clear intention you’re all set to become a leader. Your new-found sense of leadership automatically opens up new doors and paths to greatness. You will begin to speak differently and see with wider vision. People you know will begin to relate to you in a more enhanced way because you are living on a higher or more advanced level. You now move in life with confidence, knowing that you trust yourself and have the ability to lead others as others sense they can trust you.

Vision
Visionaries articulate their dream (or purpose) in a way that others comprehend with ease. Accompanied with passion and determination, a vision ignites us from within and radiates outwardly - inspiring people to participate – bringing the vision to fruition.

Vision is intended to have a positive impact. At times, visions contain ‘radical messages’ that are not always popular but, as we have observed throughout history, visionaries hold true to their beliefs, are inspired by faith and bring their dream to fruition by the courage of their convictions.

Discernment
Every choice and decision you make rests upon your ability to discern and take appropriate action. By assessing your life – even if it’s only over a one week period - you can actually see what decisions you have made and on what thoughts and feelings they were based. You can then progress to larger time frames to ensure the decisions you are making are based on discernment – not illusion.

Some people mistake discernment for judgment – but they are worlds apart. Discernment is based on observing what we say and what we do ourselves. Judgment is usually based on what others say and do – see the difference? We can assess or judge the actions of others and then discern whether those actions are appropriate and acceptable for us to replicate.

Now that you have finished reading my article, I want you to ask yourself this question – “How serious am I about becoming great and making a positive impact?”

Purchasing Life Insurance Online

No pesky calls, no badgering agents, not even a mail from the friendly wealth manager at the bank. Yet, Net-savvy Indians in urban centres are lapping up online term plans. Every 18 minutes, an online term plan is bought in the country.

Everyday, Rs 50 crore worth of insurance cover is sold through this channel. In the past six months, the seven life insurance companies that offer such term plans have issued more than 14,500 policies with a combined insurance cover of about Rs 9,100 crore. This is almost equal to the total cover offered by all new policies sold by the five newest insurance companies ( Star Union Daiichi, Shriram Life, IndiaFirst, DLF Pramerica and Sahara Life) in 2010-11.

The large cover offered by online plans is good news for an underinsured country like India. In a recent survey of middle-class people in metros by ING Life India, 85% of the respondents said they felt a greater need to protect their lifestyle. Yet, the average life insurance policy issued in 2010-11 gave a cover of just Rs 1.93 lakh.

Thank You Steve Jobs

Apple's Steve Jobs has died from cancer at the age of 56, a premature end for a visionary who revolutionized modern culture and changed forever the world's relationship to technology through inventions such as the iPad and iPhone.

Leadership Qualities

Be Trustworthy
Trust is the basis for almost all the relationships in your life. Without trust, it's impossible to create healthy and productive environments, either with work or personal situations.

Be aware that others are watching you ... assessing your values system and integrity. People want to be assured that their trust, followed closely by their respect is being placed in a safe place -- your hands -- and that they are indeed wise to follow where you lead.

When people trust you, they are more willing to give their best, as they know that they always get your best. This leadership quality is sometime referred as integrity or honor, but all these terms have the same basic meaning: you say what you do and do what you say- period.

Inspire People to Work Toward The Vision
You can't push people to believe in or want to work toward the organizational vision and goals, but rather, one of the qualities of good leadership is that you guide, lead, and inspire people to want to participate in the process of moving toward the vision.

Be Self Aware and Insightful About Your Impact On Others
One of the most important qualities of good leadership is that the individual is aware of him or herself ... their abilities and the impact that they have on others.

If this doesn't come naturally to you, work on actively putting yourself in others' shoes. Recognize how you affect things and anticipate how others will react to your decisions and personality. While creating this analytical dialogue can seem foreign at first, you will find that it comes quite naturally with time and practice.

Accept Responsibility for Your Actions
Those who have qualities of good leadership never pass the buck. In fact, the best leaders will not only take responsibility for their own mistakes, but also shield their team from negative consequences, going to bat for them.

As a leader, always remember that the buck stops with you. We seem to be raising a society of people who prefer to blame others for their feelings, circumstances and lack of success.

True leaders are masters at accepting responsibility for all that comes their way and taking ownership and responsibility for getting things back on track. Blaming, justifying and excuse making just isn't in their responsibility.

Have High Self Worth and Self Esteem
You might not think that how you feel about yourself has a whole lot to do with how others perceive you or how effective you can be at taking charge of a group situation. However, it would be a huge mistake to make this assumption. Every individual is either their own best friend or their own worst enemy.

How you feel about yourself often leads to subconscious patterns. Those with a negative self worth may have many other leadership qualities, but sabotage their own efforts with a deep belief that they aren't good enough to carry the day.

Dealing with self esteem can seem like a touchy-feely waste of time, but that is absolutely not the case. It is crucial to your success and leadership ability.

Lead versus Manage
There is quite a fine line between these two styles. While a leader may certainly manage, managers rarely lead.

Leadership

It is widely accepted that effective leadership is essential for the long-term success of any business. Indeed, high-quality leadership is imperative for transforming a group of individuals into a team and shaping them into a force that operates as a competitive business.

Recent research carried out by the Chartered Institute for Personnel and Development (CIPD) and by talent management consultancy DDI entitled UK Highlights: Global Leadership Forecast has revealed that today’s leaders are not equipped to handle the challenges that organisations face in the new economic scenario.

The study carried out on 367 business leaders and 56 HR professionals in the UK revealed that only 36 per cent of business leaders and 18 per cent of HR professionals rate their organisation’s quality of leadership as “high”.

Furthermore, the research revealed that only 38 per cent of both UK leaders and HR professionals rate their organisations’ leadership programmes as being highly effective. Indeed, 20 per cent of leaders and 24 per cent of HR professionals rate these programmes as “highly ineffective”.

It could well be argued that these two studies paint a worrying picture for businesses today, as the quality of leadership is vital for the success and sustainability of an organisation.

The UK research demonstrated that businesses that have the highest quality leaders stand a better chance of outperforming their competitors in key basic areas such as financial performance, quality of products and services, employee engagement and customer satisfaction.

In addition, the research revealed that organisations with leaders of the highest quality are the ones that are able to retain the highest number of employees and have the most engaged and passionate leaders.

Finally, the UK study uncovered three key drivers that would help improve the quality of leadership within the organisation. These are leadership development, talent management and management culture. The report states that for organisations to be able to achieve the high-quality leadership needed to drive business success in the coming years, organisations need effective leadership development systems along with effective talent systems, surrounding leadership development – which includes selection, performance management and succession management.

The studies have identified the key skills leaders need and the kind of development and talent management processes that are most effective. The HR function’s role in all this lies in being able to truly understand who its customers are to ensure that it plays a crucial role in the success of its leaders and, more importantly, the success of its business. As Warren Bennis, a leadership expert, said: “A business short on capital can borrow money, and one with a poor location can move, but a business short on leadership has little chance of survival.”

Organ Donor

The man who underwent a blood-group incompatible transplant more than two months ago and received his wife’s kidney is now worried that she may be unable to get insurance coverage after the donation. TAN CHOE CHOE takes a look at the benefits and protection accorded to life donors in Malaysia

LEE Leong Kim and his wife, Hernawati Subli, were featured holding hands and smiling happily two months ago on the front page of this newspaper when they shared their story on being the first ABO-incompatible transplant patients in the country when Hernawati successfully donated her kidney to Lee.

Their story chalked up a medical milestone for the country as their doctors achieved what had been thought of as medically impossible. In a telephone conversation on Thursday, Lee, 57, said he was undergoing normal post-op care while his wife, fondly known as Herna, 34, is now active and back at work at the couple's tour and travel business.

But before the operation, Lee, who had been diagnosed with chronic renal failure in 2009, was keen to ensure that Herna's welfare was taken care of in case anything happened to him.

He also wanted to ensure that if she fell sick, she would get the best medical care possible and would not be left dependent on the state in the face of rising medical costs. This was also especially important as they have two young boys aged 7 and 8.

Hence, Lee went about to ensure that Hernawati had sufficient insurance coverage, but he was shocked to discover that his wife might not be eligible for any insurance coverage any more.

An insurance company, which had taken an annual premium payment of RM3,500 from the couple when they signed up in June, was unable to confirm if their policy had been approved after Lee told them that Herna had undergone a donor transplant operation.

"We paid them RM3,500 upfront about 31/2 months ago. After the operation, we updated them of the procedure, thinking that we might have to pay extra because she now only has one kidney. But until now, there's no news if we would be approved at all."

Another insurance company told them firmly that they do not provide coverage to former organ donors. "Because the ABO-incompatible transplant procedure is not available in public hospitals, we can only do it in private hospitals.

"So, my wife has to fork out her own money to pay for the admission and procedure to donate her organ to me.

"She is facing a future where she can't get a new insurance coverage. I think this is very unfair to someone who has generously given one of her precious organs to save another person's life."

However, Life Insurance Association of Malaysia (LIAM), in an email interview, said life organ donors, specifically kidney and liver donors, should have no problems getting any insurance coverage in Malaysia.

"If one has fully recovered after the surgery with no residual loss of organ functions, then they are eligible to apply for all insurance plans, including critical illness and hospitalisation benefit schemes."

LIAM is a self-regulating trade association with 17 members, of which 15 are life insurance companies and two life re-insurance companies. It is a statutory requirement under the Insurance Act 1996 for all life insurance or life re-insurance companies to be members of LIAM.

"However, there is a waiting period of between six months to a year from the date of the organ donation procedure to ensure that the donor has fully recovered before they are eligible for insurance coverage again.

"Donors and non-donors can receive the same type of coverage. However, if the applicant discloses a history of organ donation, further underwriting may be requested to ensure that the donor has fully recovered with no residual impairment or complications."

Asked if there was any insurance firm that preferred not to grant coverage to organ donors, LIAM replied "every insurer has their policy issuance and risk thresholds".

It is important to note that if one decides to become an organ donor and have the procedure in a private hospital, his or her medical insurance plan will not cover admission and surgical costs involved. All these costs also cannot be claimed against the recipient's insurance policy.

LIAM said: "The choice to donate an organ is optional, the decision lies in the hands of the donor. Insurance, traditionally, is priced to cover for unexpected incidents beyond the control of the insured person."

On the upside, life insurance coverage has no exclusions, meaning if a person who owns a life insurance policy dies due to surgical complications, including complications arising from organ transplant procedures, he or she will still be entitled to its death benefits. This is regardless whether the policy holder is a donor or a recipient.

Thankfully, Herna already had two life insurance policies before she and Lee found out that the ABO-incompatible transplant surgery was possible.

Although one of the insurance providers told Herna she would not be covered for any kidney-related illnesses for a year after the operation, she would still be covered if she were to fall sick for any of the other major critical illnesses as stipulated in the policy.

Hopefully, with LIAM's clarification, Herna will not face problems applying for the insurance coverage that she deserves in the future.

LEE and Herna might only have complained about insurance coverage so far, but their case has brought to attention the myriad of issues involving the welfare of life donors. Apparently, some donors have been "penalised" after donating his or her organ to save another's life.

Datuk Dr Ghazali Ahmad, consultant to the Health Ministry's Transplantation Unit and chairman of the National Transplant Policy, knows of a donor who was sacked from his job after he had donated a kidney to his brother.

"He was sacked without compensation. "The employer thought he had taken too much sick leave and felt he was not fit to work anymore.

"He worked in a tyre factory and should be healthy enough to resume work after the procedure," said Dr Ghazali, who is also a member of the National Transplant Council.

Having seen such cases, it was no surprise that Dr Ghazali firmly answered "No" when asked if the welfare of life donors in Malaysia was being properly looked after. He said there was no guarantee one would not be unfairly treated after an organ transplant procedure.

"Because the perception is that once you are a donor, you are sub-normal, handicapped or weak. "But in published scientific studies that looked at life kidney donors, comparing them with their non-donor siblings, the donors actually live longer and are healthier."

But, he said, it did not mean when you donate, you became stronger and healthier, "but you definitely do not become weaker". "When you have been selected as a donor, you are already the fittest of the lot(among your siblings). "So long as you survive the surgery -- where the risk is very low -- you remain the fittest."

A lot of activities, he added, were focused on increasing public awareness on the need for more organs and to encourage people to donate, all geared towards increasing organ donation and transplantation rates, but very little, if at all, looked after the interest of donors.

Who Is Kim Woo Su

The death of a food delivery man who regularly donated a portion of his small salary to help the needy is touching the heart of South Korea. People he barely knew have attended his funeral, expressing condolence. They praised him for carrying out the spirit of sharing despite living on a shoestring budget.

Kim Woo Su, 54, died last Sunday, two days after his motorcycle collided with a car while on a delivery run. Though Kim scratched a living as a delivery man of a small Chinese restaurant, he had given part of his salary to children in need through Child Fund Korea since 2006. He had earned 700,000 won (RM1,914) a month from the restaurant in the southern Seoul town of Ilwon.

On top of his years of donations, he left 40 million won (RM108,460) in life insurance money to the charity. He had insured himself against traffic accidents because his job put him at risk of them.

Orphaned at 7, Kim once served time for arson. Six months before release, he began to make donations for children who lived a hard life like he did. His decision to give came in jail after he read about children suffering from domestic violence.