Yes - Malaysia Farker Need This

A property management firm went to extremes to teach a defiant driver a lesson after a parking fee dispute in northeastern China.

The driver was leaving a residential estate in Benxi, Liaoning province, on Tuesday morning when security guards stopped her car to charge her for parking, local news portal reported.

The woman refused to pay, and after some argument, she walked away, leaving her white sedan parked directly outside the security station.

The car blocked several other vehicles from entering the housing estate. After about two hours, the estate’s property management firm decided to hire a crane to move the car.

But rather than simply removing the obstruction, the firm ordered the crane worker to lift the car onto the security station’s roof and to leave it there.

The driver and the firm’s representative were eventually asked to meet at a nearby police station to settle their dispute, the report said.

Following the meeting, the crane was again deployed to bring the woman’s car back to the ground. The report did not say whether the woman paid her parking fees or who absorbed the cost of the crane service.

Malaysia Life Insurance H1 2017

The life insurance industry registered healthy growth in the first half of 2017 with a 4.7% increase in new business weighted premium to RM2.56bil from RM2.44bil in the same period a year ago.

The gross sum assured for all new individual policies was RM60.4bil, 12.8% higher compared with RM53.5bil achieved in H1FY16, according to a press release issued by the Life Insurance Association of Malaysia.

In the first six months of 2017, the industry registered a 3.2% increase in benefit payments for death, disability, medical, bonuses and others, amounting to RM4.97bil as compared with RM4.82bil for the same period last year.

In July 2017, the industry introduced the Direct Distribution Channels platform for the sale of pure protection life insurance such as term insurance through the Internet or insurance companies' offices.

As one of the initiatives under the Life Insurance and Family Takaful Framework issued by Bank Negara Malaysia in 2015, the aim is to raise the percentage of Malaysians covered by life insurance from 56% presently to 75% by 2020. 

The press release also notes that the industry experienced a 5.2% year-on-year decline in registered life insurance agents to 77,736 agents as at June 30, 2017. The number of bank staff who were registered to sell life insurance also dipped 1.9% to 18,652 staff. 

Overall, the industry experienced a lower rate of new agents joining the industry from 8,877 agents to 7,683 agents as at June 30, 2017.

SOCSO New Investment Strategy

Malaysia’s Social Security Organisation (Socso) has been beefing up its investment department in a bid to achieve superior investment performance to enable sustainable defined benefits for its social protection schemes.

Socso has total assets under management of RM25.8bil as at June 30, 2017, and it aims to achieve returns of at least 5% to 6% under its new five-year Investment Strategy Blueprint.

Chief executive officer and director-general, Datuk Dr Mohammed Azman Aziz Mohammed, said Socso had recently reviewed its investment policy and diversification strategy, and brought in a sizeable experienced investment personnel.

“We have diversified our investment. Previously, we just invested in equities, fixed income and money market, and now we have diversified into property and private equity.

“We managed to get the approval from the Ministry of Finance (MoF) to add the allocation for different mandate of investment. The governance is there...we cannot go beyond that,” he told Bernama.

Socso was set up in 1971 under the Ministry of Human Resources (MOHR), formerly known as Ministry of Labour, to provide social security protection to all employees or workers in Malaysia.

Azman said with a strong team, Socso hoped it could do more in terms of investment.

“We need returns. We cannot just rely on the contributions alone. The fund is growing but it does not increase in line with the payment we have been giving out for the members’ benefits and compensation.

“That’s why we need to diversify, we need to improve the returns and have more income in order for us to sustain for longer years in terms of the fund that we have.”

He said the organisation’s trust fund concept was pooling of resources and sharing of risks.

It did not have to pass the returns that it received but it now needs better returns because the base is getting bigger, he added.

“Our recipients are long-term recipients. Every year, you keep adding to the list of recipients that you have. And, every three to five years, we will review the benefits that we provide to the insured person.

“We will enhance, we will improve the payment, based on the actuarial study, consumer price index and cost of living and so on, and that’s why we need more returns to ensure we provide better benefits to the insured person based on the economic situation,” he added.

While the current key performance indicator for the investment department based on the blueprint is to get returns for Socso of between 5% and 6%, Azman said he hoped the fund could do more in the years to come, while remaining conservative on its capital preservation and adherence to high corporate governance and practices.

Azman had also answered a question on the new Section 74a, which was inserted in the Employees’ Social Security Act 1969, that had raised some eyebrows due to its impact on the security of the fund.

The new provision allows Socso to establish or take over any company with the approvals from both the MOHR and MoF.

“The reason why we amended that section was for us to run our rehabilitation centre in Melaka as a private entity.

“That rehab centre, meant for our own insured persons, is considered as another benefit within Socso. Those who become disabled or those who cannot work because of health reasons, we will put them at the rehab centre.

Azman said the process of converting the rehabilitation centre into a ‘Sendirian Berhad’ company would be completed soon.

But while stating the conversion of the rehabilitation centre in Melaka into a private entity as the main reason, Azman did not reject the idea of using the same clause for another private equity exercise.

“That is actually the main reason for the amendment but we do not know what’s in store for the future,” he said.

3.6 Million Credit Cardholders

There were 3.6 million main credit card holders in Malaysia as of the end of June, according to Deputy Finance Minister Lee Chee Leong.

Based on numbers issued by the Department of Statistics for 2016, the figure accounted for 18% of the 20 million Malaysians aged between 20 and 74.

“As at end of June, the outstanding balance for credit cards was RM36.9 billion, of which 7.3% or RM2.7 billion was overdue balance.

“The remaining outstanding balance exceeding the repayment date not exceeding three months is 6.2%, valued at RM2.3 billion, while the balance that exceeded three months is 1.1% and valued at RM0.4 billion,” Lee said during the question-and-answer session at the Dewan Negara sitting here today.

He was replying to a question from Jaspal Singh on the percentage of the populace having credit cards, the amount of unpaid credit card debt and number of insolvency cases.

Lee said generally, 43.6% of card holders settled their credit card debts fully from January to June.

Another 43.6% paid at least 5% of the outstanding balance during the same period while the remaining 12.8% did not pay the outstanding balance of the minimum payment before or during the payment date.

On the number of insolvency cases, Lee said 845 individuals aged below 30 were declared bankrupt in the first half of the year.

Replying to a supplementary question from Jaspal pertaining to the ministry’s monitoring of online gambling cases involving the use of credit cards, Lee said Bank Negara Malaysia has issued guidelines requiring credit card issuers to restrict any transactions for such activities, identified by the business category code.

Indonesia Takaful Insurance

Namun, itu bukan hal aneh bila melihat rekam jejaknya. Lebih dari 20 tahun dunia asuransi digelutinya. Wanita kelahiran 1972 ini telah berkiprah di berbagai perusahaan asuransi, seperti Asuransi Cigna, AIA Financial Indonesia, dan MLC Life. Setelah 21 tahun 6 bulan bergelut di dunia asuransi, ia akhirnya mencapai puncak tertinggi kariernya saat ini, sebagai presdir. Di Sun Life Indonesia, Elin bergabung sejak Mei 2013 sebagai chief distribution officer.

Ketika menjabat CDO, Elin melakukan gebrakan dengan menginisiasi adanya agensi khusus syariah pada 2014, yang terpisah dari agensi konvensional. Sekarang, inisiasinya berbuah manis, karena kontribusi segmen syariah mencapai angka 30% lebih kepada perusahaan dengan jaringan 58 kantor pemasaran. “Kami melihat bisnis syariah ini memiliki potensi yang besar,” ujarnya.

Tak hanya memisahkan asuransi konvensional dan syariah, di bawah kepemimpinannya, Sun Life juga mendirikan Salam Institute sebagai pusat pelatihan khusus syariah untuk para agennya. Perusahaan asuransi jiwa ini juga mendirikan Sun Syariah Leadership Centre sebagai pusat pelatihan para sales leader produk syariah.

Elin menyebutkan, embrio corporate university sudah tertanam di Salam Institute yang telah beroperasi tiga tahun. ”Ada lebih dari 2.000 orang yang saat ini sedang menimba ilmu di Salam Institute per akhir Mei 2017,” katanya.

Materi yang diajarkan di Salam Institute antara lain teknik penjualan dan aktivitas di industri keagenan asuransi jiwa dengan pendekatan syariah. “Kami menyebutnya program Nurturing 24, di mana setiap mitra yang baru masuk akan secara intensif mendapatkan pelatihan selama 24 bulan,” kata Elin.

Di pasar asuransi syariah, Sun Life mengedepankan positioning sebagai Modern Syariah Insurance Expert (MSIE). Dengan mengusung konsep MSIE, jalur agensi syariah Sun Life memiliki sejumlah keistimewaan. Di antaranya, menjadi perusahaan asuransi jiwa pertama dan satu-satunya yang memisahkan jalur distribusi konvensional dan syariah, serta memiliki beragam produk inovatif. “Dulu kami memulai dari hanya satu produk syariah, sedangkan saat ini sudah bertambah,” kata Elin.

Tercatat ada tiga produk asuransi syariah yang dimiliki Sun Life. Pertama, produk asuransi Brilliance Amanah yang merupakan produk unit link pertama yang dirancang untuk membantu ibadah haji dan umrah. Kedua, produk asuransi Briliance Hasanah Fortune Plus yang merupakan produk unit link syariah yang dikhususkan untuk investasi. Dan ketiga, Asuransi Sun Medical Platinum Syariah, yakni asuransi kesehatan syariah pertama di Indonesia yang cakupannya hingga ke luar negeri dan cashless. “Target pasar kami adalah nasabah kelas menengah-atas,” ujar Elin.

Dalam operasionalnya, produk-produk itu ditawarkan dengan berbagai kemudahan teknologi dengan hadirnya Clients App, aplikasi mobile berbasis Android dan iOS untuk memudahkan akses ke polis asuransi. Fitur yang dapat diakses melalui aplikasi ini adalah mengetahui informasi detail polis nasabah, memonitor portofolio investasi, mengecek daftar rumah sakit rekanan, menghubungi agen, dan mendapatkan informasi terkini mengenai perusahaan. Dengan teknologi ini, banyak hal yang bisa disederhanakan, seperti presentasi dan ilustrasi melalui ponsel pintar (smartphone). “Saya mengatakan kepada agen bahwa mereka harus menempatkan diri sebagai insurance expert,” ujarnya.

Menurut Taufik Marjuniadi, pengamat dan praktisi industri asuransi syariah, prospek industri asuransi syariah masih akan terus berkembang seiring dengan perkembangan perbankan syariah dan lembaga keuangan syariah lainnya. Pertumbuhan asuransi syariah sampai saat ini, kata Taufik, masih di atas dua digit, baik dari segi pendapatan kontribusi, aset, maupun investasi.

Tantangan di industri asuransi, menurut Taufik, menyangkut isu-isu peningkatan program, literasi, edukasi, dan promosi asuransi syariah kepada masyarakat; pengembangan dan penelitian produk khusus yang berbasis asuransi syariah; akselarasi dan sosialisasi program inklusi antarlembaga keuangan syariah; serta peningkatan SDM asuransi. “Pasar asuransi syariah dapat terus dikembangkan di semua sektor lainnya untuk semua elemen masyarakat, baik untuk individu maupun korporasi,” ujarnya.

Insurers & Private Hospitals Scam

Insurance companies and Takaful operators have assured that they have not requested “cuts” from hospitals for the medical expenses incurred by policy holders. 

Three insurance companies – The Life Insurance Association of Malaysia (LIAM), General Insurance Association of Malaysia and Malaysian Takaful Association (MTA) – published in a joint statement that they viewed such unfounded allegations made by several private hospitals with serious concerns. 

This comes after the Ministry of Health (MOH) announced on 11 August that it will work with Bank Negara Malaysia (BNM) to investigate the ongoing practice of private health insurance companies imposing administrative charges on private hospitals. 

According to Health Minister, Datuk Seri Dr S. Subramaniam, the matter had long been in practice by almost all private health insurance companies nationwide. However, it has only come to his attention recently, after receiving complaints from several private hospital representatives.

Unethical practices could lead to hikes of medical costs

Subramaniam expressed that if these allegations were true, the practice “was unethical and could cause medical costs in the country to soar.”

“For example, a hospital bills the insurance company a total of RM1,000 for the patient’s treatment. The insurer only pays RM900 to the hospital while the remaining RM100 is calculated as an administrative of service charge,” he explained.

In addition, the private hospitals have reported having to follow the health insurance company’s requirement or risk losing patients. 

“If a private hospital refuses to pay the administrative charges, the insurer will remove them from the list of panel hospitals and advise their clients to seek treatment at another hospital,” said Subramaniam. 

The insurance companies and Takaful operators have rebutted, claiming that they have – through LIAM, PIAM and MTA – “worked closely with the hospitals and third party administrators to ensure the cost of healthcare is maintained at an affordable level.” 

Malaysia health insurance to face double-digit inflation regardless

According to a global survey done by consulting and broking entity Mercer Marsh Benefits, which is affiliated to Marsh Insurance Broking (Malaysia) Sdn Bhd (MIB), Malaysians are facing a double-digit healthcare inflation. 

Medical trend rates 2017 survey data. Photo credit: Mercer Marsh Benefits/The Edge Markets

The inflation which stood at 11.5% in 2016, is projected to rise to 12.7% this year. This is at a much faster pace than the average of 10.7% in Asia last year, which is projected to ease to 10.2% this year. 

The survey, conducted in 63 countries between March and May this year, also states that among the reasons for the hike of inflation rates are the increased utilization of medical servces as more people are succumbing to lifestyle diseases, the growing ageing population and the costly advancement of medical technology. 

Senior vice-president of MIB, Ho Mun Kiat also remarked that the weak ringgit is another major factor that has driven the inflationary pressure on healthcare – due to more expensive imported medical equipment and supplies. 

Insurance associations call for more transparency among private hospitals

The insurance associations also echoed the reasons, and stated that the more affluent segment of the population is also demanding better healthcare services. 

They highlighted that fees charged by doctors in private hospitals for consultation and performance of procedures are regulated under the Thirteenth Schedule of the Private Healthcare Facilities and Services Regulations. 

However, other components of the hospital charges – such as, fees for hospital stays, laboratory tests, nursing care, drugs, use of equipment and operation rooms – are not regulated. “This contributed to a wide range of cost differences among private hospitals,” they said. 

In light of this, they have suggested that the government make it compulsory for all hospitals to publish the fees for the cost of treatments. This would provide a choice to policy holders on which hospital he/she would like to be treated and encourage transparency all around. 

They have also assured that they will cooperate with the MOH, BNM and healthcare providers to ensure medical treatments are charged at fair prices and treatments recommended are clinically required.

Subramaniam has since directed the ministry’s secretary-general, Datuk Seri Dr Chen Chaw Min to liaise with BNM to take appropriate action and ensure that health insurance companies conducted business professionally.

Cash For Whistleblower

An initiative by the Kajang Municipal Council (MPKj) to give cash to informants who report on illegal waste dumping activities has shown results.

The number of illegal dumping spots has decreased drastically ever since the system was introduced in 2015.

Balakong assemblyman Eddie Ng said credit should also be given to the council’s “spy team” who are deployed round-the-clock to check on illegal dumping.

Ng said every informant who provided photographic or video evidence of the activity and particulars of vehicles found dumping waste at a particular spot was given RM500.

In 2015, a total of RM48,000 was given out to them, RM70,000 last year and RM16,500 so far this year.

“Besides that, the council has also received information from 75 people on illegal dumping since last year.

“These people either contacted me, the local councillors or MPKj whenever they spotted illegal dumping,” he said in a press conference at Taman Indah, Batu 11 Cheras.

Ng added that 268 vehicles were involved in illegal dumping in 2015, 138 last year and 98 so far this year.

“The vehicle owners who committed the offences for the first time were fined RM1,500 for each offence, their vehicles impounded for 15 days and they also had to pay the storage charge.

“Vehicles of repeat offenders will be kept for a month. They will also have to pay the storage charge and be charged in court,” he said.

Ng added that the number of commercial waste dumping spots reduced from eight in the last two years to only two now.

He said the reduction in illegal dumping activity was a reflection of the good cooperation between the council and the public.

Who Is Simon Tan Chee Haw

He was once a carwash boy in shabby clothes, but now he attends Lions Club events in a suit and tie and gets addressed as “Mr President”.

Automobile dealer Simon Tan Chee Haw, 37, said he started cleaning cars in Cheng here as a 17-year-old.

“Those days I wore tattered clothes at the workshop and my bosses used to swear at me using Cantonese coarse words,” he recalled.

That boy was later promoted as a mechanic and went on to start his automobile business in 2002. In 14 years, he grew the enterprise from one outlet to seven workshops with more than 60 employees.

In July, the entrepreneur was elected president of the Tanjung Bidara branch of the Lions Club.

“These days I go around events in coat and tie, a far cry from my early working years,” said Tan, adding that he was grateful to get the support of the past committee and club members.

Tan said he never forgot his humble beginnings, through which he learnt precious values of respecting others and generosity.

“At one point, I was given the task of towing vehicles involved in accidents along the expressway and trunk roads.

“Seeing dead bodies made me realise that cash was not always king but charitable deeds would be remembered even after life,” he said.

Tan attributed his success to his family and good friends who gave him all the support when he first ventured into business.

“They not only encouraged me in my work but also to help the needy. So, I started to allocate funds for charity,” he said.

A staunch believer of honesty being the best policy, Tan said he built trust among his suppliers and clients to grow his business.

With enough manpower to manage his outlets, the father-of-four is focusing more on charity work.

Last year, a close friend invited Tan to join the Lions Club and within a year, he found himself heading the local branch of the internationally accredited service organisation.

“I don’t want to be a profit-minded businessman. I am happy to go around doing good and meeting people,” he said.

Since becoming the club president, Tan had organised a series of charity events. To improve his public-speaking, Tan is now polishing his command of English.

“I want to break the record within the Lions Club by organising at least 40 charitable events in a month.

“I also wish to see the membership increase from about 70 now to 100 by middle of next year,” he said.

BN To Tame Medical Inflation

Bank Negara will come out with a framework as soon as possible to reduce the inflation of medical insurance, which now stands at 12%.

Governor Datuk Muhammad Ibrahim said the current inflation rate is quite high, thus requiring measures to address the issue.

He said rising medical claims had increased pressure on medical insurance premiums.

"On average, medical insurance claims rise 14% annually," Muhammad said during the announcement of the country's second-quarter gross domestic product (GDP) figures in Kuala Lumpur on Friday.

Net claims paid to policyholders increased to RM4.9 billion in 2016 compared with RM4.5 billion in 2015, owing to demand for better healthcare, ageing population and higher prevalence of chronic and lifestyle diseases.

He also said the increase in the cost of drugs and treatments were among the factors that led to the higher insurance claims.

On the presence of foreign insurance companies in the domestic scene, some of whom did not adhere to Malaysia's ownership laws, Muhammad said the central bank had urged these insurance companies to fulfil their promises.

"That is what we are asking after giving the licence (to insurance companies) to operate in Malaysia... however, this also depends on the size of the company; smaller companies will deal with smaller problems and vice versa," he said.

It has been reported that foreign insurers in the domestic market have been instructed to find local partners and to involve local partners as stipulated in Malaysia's ownership laws.

Bank Negara had reportedly issued a directive in April to Tokio Marine Holdings Inc, AIA Group Ltd, Great Eastern Holdings Ltd and Prudential to submit the names of the local partners, who will take over 30% shareholdings in their operations.

Following the liberalisation of foreign ownership, Malaysia requires foreign insurance companies and takaful operators to comply with 30% local participation in their companies and keep 49% to 70% foreign equity in their company.

In another development, broader risk factors, namely, vehicle model, driver's experience, driving behaviour and vehicle's security features are now taken into account to determine motor insurance premiums compared to factors such as the insured's age, vehicle age and past claims records.  

In 2016, 19,307 vehicles were stolen and insurers paid RM77.8 million in theft claims for the top three vehicle models, namely, Toyota Vellfire, Mitsubishi Pajero and Toyota Hilux.

Purchasing Life Insurance

Life insurance is a product few people want to think about. That's perfectly understandable, as life insurance forces men and women to consider their own mortality. But life insurance is not something adults should avoid, especially if they have dependents.

Many people should consider life insurance when estate planning so they can provide security for their loved ones. But life insurance is a purchase unlike any other, and people may be confused or intimidated when attempting to purchase life insurance policies.

Deciding if you need coverage - While life insurance seems like the kind of thing every person should have, that's not necessarily the case. For example, single men and women with no dependents and no tax or debt concerns generally do not need life insurance. If you are single but have tax issues or a considerable amount of debt, then a life insurance policy can be used to pay those debts upon your death. Adults with dependents, such as a spouse and/or children, should consider purchasing life insurance, which can help your surviving dependents maintain their quality of life and pay their bills in the wake of your death.

Buying life insurance - Much like various other types of insurance, life insurance can be purchased from an insurance agent or via an insurance company's website. When choosing a company from which to buy a life insurance policy, look for a company with a strong rating, as no one wants to end up being burned by a life insurance provider who goes out of business. Some people prefer to work with independent brokers who can share information about products from various providers rather than just the ones offered by the firm company-affiliated agents work for.

Choosing coverage - When choosing coverage, you will no doubt be asked if you prefer term insurance or permanent insurance. Term insurance is the least expensive life insurance, and such policies only last for a predetermined number of years. Men and women may purchase life insurance policies if they only want life insurance until they retire or until their children reach adulthood. Permanent insurance is more expensive and will last from the moment you purchase the policy until your death. Many people choose permanent life insurance policies so the money their beneficiaries receive upon their death can be used to pay estate taxes. In addition, there is an investment component to permanent insurance policies, as a portion of the premiums on such policies is invested (policies will spell out how the money is invested) and allowed to grow tax-free so long as the policy is open. Term insurance only provides protection with no investments.

When choosing how much coverage to purchase, it's easy to go overboard and aim for as much as possible. However, many financial advisors suggest purchasing enough coverage to pay for funeral costs and a level of income replacement you can comfortably afford. If your spouse does not work, you should consider purchasing enough coverage so he or she can afford to pay the family's day-to-day cost of living expenses.