Motor Claim Process Updates - Malaysia

Bank Negara Malaysia (BNM) says that enhancements that have been made to the Policy Document on Claims Settlement Practices (PDCSP) will make the motor insurance claims process fairer, quicker and more transparent for all motorists. The changes were aimed at simplifying procedures, improving service standards and accelerating approvals for motor insurance claims.

Smoother Claim - Central bank has been working closely with insurers, the transport ministry, JPJ, Puspakom as well as repairers to make the process simpler and more user-friendly. A key improvements consumers can expect from the revised claims settlement practices policy document is a faster turnaround time, which sets clearer expectations for insurance providers to simplify the claim process so that consumers can benefit from fair, transparent and a timely claims outcome

The revised policy has reduced the timelines for each stage of the claims process from claims notification until claims payment, including how quickly insurers have to get back to you so that you are not left waiting in the dark. For example, the time taken for own damage claims have been reduced by 20 working days and the time to claim for theft has been reduced for about 80 working days. This will help to cut the average time taken to settle motor claims by about half.

Not At Fault -motorists who are not at fault in a vehicle accident can claim their own insurance without risk of losing their no claim discount (NCD) under the Own Damage Knock-For-Knock (ODKFK) policy.

Motorists with a comprehensive policy can claim directly from their own insurer without having to fork out the repair costs or wait for the other party’s insurer to process the claim. This will allow vehicle owners to carry out repairs to their vehicles quickly. All a motorist has to do is submit a police report and other required documents to their insurer to facilitate a claim.

ODKFK policy doesn’t apply in blanket fashion, and if the accident involves a bus or taxi or results in any injury, the affected motorist will have to claim from the party at fault’s insurer. Most everyday cases in accidents involving vehicles, ODKFK is a much smoother way to get your car fixed and back on the road.

24/7 Roadside Service - all insurance companies are now required to provide 24/7 roadside assistance services, be it through their mobile applications or websites. The move is aimed at helping motorists by limiting the engagement they usually have with unauthorized tow trucks following an accident.

The policy has also introduced a new requirement, where insurers are expected to establish a motor customer service charter, which should provide greater certainty and transparency to consumers on the claims process. This spells out very clearly what kind of service you can expect when making a claim, and consumers should be able to access the charter easily as insurers are required to publish it on their website. For example, you can find the service standard and turnaround time for the entire claim process in the charter, including applicable criteria and thresholds for expedited or fast track claims. 

With the charter, you can hold your insurer responsible and accountable if they do not adhere to their own standards and timelines or fail to keep you informed. The charter takes the uncertainty out of ‘how long will this take’ or ‘what can I expect’ and that really empowers consumers when dealing with claims.

In cases where consumers are dissatisfied with their insurance decision, she said there were options to help address this. The first thing you can do is complain to the insurer’s complaints unit. Their contact should be published clearly on their website as required by the complaints handling policy which we issued. Your insurer should also respond to you within 14 working days and will be shortened to five working days from April next year.

Insurance Service Scam - Singapore

In just six months, more than $21 million was lost to insurance services scams here, a new scam variant that emerged in 2025. There were 791 such cases in the first half of 2025, said the police on Aug 30 in releasing the mid-year scam statistics.

Impersonator - Scammers would impersonate officers from companies such as “NTUC” and UnionPay and convince victims they have existing insurance packages. To cancel these packages, scammers would ask victims for personal details and to transfer money for the cancellation to be verified. Victims would be promised a refund after their insurance package is cancelled, but they would realize they were duped after making multiple transfers without receiving the promised refunds.

Insurance services scams - did not surface in the police’s 2024 annual scams brief but are now ranked seventh among the top 10 scams of concern in the first half of 2025. The average amount lost to such scams was about $27,000, and around three in 10 victims were aged 65 and above.

Phone calls and WhatsApp were the most common channels used by insurance services scammers to contact potential victims. The police said that since May, they have observed a new money transfer method used for these scams, which involve fund transfers to credit cards.

There has been a pattern of scammers instructing victims to make fund transfers from their bank accounts to credit cards provided by the scammers. These transfers are believed to be done to increase credit limits, enabling large purchases of jewellery and precious metals, particularly gold bars.

The police added that this modus operandi is also used in government official impersonation scams.

In other insurance services scam cases, the scammer would guide the victim through WhatsApp’s screen-sharing function to increase bank transaction limits and perform the bank transfers.

The police said there were also cases where scammers posed as government officials or staff from the Monetary Authority of Singapore to assist victims in the cancellation of the insurance packages.

More malware scams - Scammers have consistently found new ways to dupe victims, with new scam types emerging over the years. In 2023, malware scams which were unheard of previously, were among the top 10 scams with over $34 million lost.

Scammers would get victims to download apps on their mobile phones under the pretext of paying for goods and services. These apps contained malware, and when victims downloaded them, the scammers would take control of their devices.

There were 99 such cases in the first half of 2024, which jumped to 363 cases during the same period in 2025. But the amount lost to malware scams dropped from $125.4 million in the first half of 2024 to $5.5 million in the first six months of 2025.

The huge losses in 2024 were because of one case that involved $125 million.

Four in 10 malware scam victims were aged 50 to 64, with Facebook and TikTok being the most common channels used by scammers to contact victims.

Insured or Not Insured - by 7 Minutes

A man in eastern China who crashed into a luxury car on the day he bought his own second-hand vehicle is facing a repair bill of more than 100,000 yuan (US$14,000) for both cars. However, his insurer refused to cover the damage, saying the policy was still seven minutes from taking effect.

According to Zhejiang Television, a man surnamed Ma from Taizhou in Zhejiang province took out a loan of 115,000 yuan (US$16,000) to buy a second-hand car. On August 4, Ma picked up his car from a showroom and bought commercial insurance for 3,995 yuan (US$560). Later that evening, he rear-ended a Maserati SUV worth about 1.1 million yuan (US$153,000).

No injuries were reported, but Ma was found to be at fault. Photos showed the front of his car had been heavily damaged, while the Maserati’s rear suffered dents and scratches. Ma’s driving experience remains unclear. In China, new drivers can obtain a license in as few as 45 days after passing four exams.

Ma estimated the cost of repairs for the Maserati would be about 60,000 yuan (US$8,400) and about 40,000 yuan (US$5,500) for his own car. He immediately filed a claim, but the insurer rejected it, saying the crash happened at 6.53pm, seven minutes before the policy took effect.

Ma said he was told he must cover the full cost himself, placing him under heavy financial strain. Lin, a manager for second-hand car sales, said Ma’s vehicle met all requirements to be driven legally.

Insurance staff said they could offer Ma some help after learning of his financial difficulties, acknowledging they should have reminded him not to drive before the policy took effect at 7.00pm. Ma insisted that he had repeatedly confirmed with the salesperson that the insurance would take effect immediately after he bought the car.

As of this writing, he is still negotiating with the insurer. The local Consumer Rights Protection Centre is mediating. The incident has sparked a widespread discussion on mainland social media.

Last November, a Rolls-Royce owner in Guangdong province, southern China, declined compensation after a minor collision with a lorry. She described the encounter with the lorry driver as a blessing and said she believed that “good deeds will be rewarded”, a response that won nationwide praise.

Contestable And Incontestable Clause

Life insurance comes with a fine-print catch: the contestability period. For the first couple of years, your insurer can play detective — and deny a death benefit payout if something doesn’t add up.

What Is the Life Insurance Contestability Period?
The primary purpose of life insurance is to provide a death benefit payout upon the insured person’s death. If the insured person dies within the contestability period — the first two years of the policy — the insurer has the right to investigate any possible misrepresentations on the life insurance application. If the insurance company finds that information was intentionally withheld or incorrect, it can deny coverage or void the contract entirely.

The purpose of the life insurance contestability period is twofold:It serves as a fraud deterrent by letting insurers thoroughly investigate claims filed soon after the policy starts.
It helps insurers spot any misrepresentation and helps control the cost of insurance due to misrepresentation.

A contestability period applies to most types of life insurance policies, including term life and permanent life insurance policies.

Why Is the Contestability Period Important?
The life insurance contestability period allows the insurance company to investigate and verify the accuracy of information reported on the life insurance application when a death benefit claim is filed soon after the policy starts. During this two-year window, the insurance company may be able to avoid paying the death benefit if it finds inconsistencies between health records and the information reported on a life insurance application.

Additionally, the contestability period safeguards the integrity of the insurance company and ensures that it is not taken advantage of by claimants. By giving the insurer time to investigate all aspects of a claim, it can ensure that only legitimate claims will be paid out.

What Happens If You Are Caught Lying on a Life Insurance Application?
If you are caught lying on a life insurance application, the consequences can be severe. Depending on the specific details of the case, your policy could be canceled. If convicted of insurance fraud, you could face hefty fines and jail time in some cases. It is important to remember that any dishonest behavior in relation to a life insurance application can lead to serious repercussions that could be difficult to unwind.

Common examples of dishonesty occur during the medical exam process, when applicants may not share the entire truth of their health conditions. The insurance may be able to deny a death benefit to a beneficiary if the insurer finds medical records that contradict the information provided on an application.

Misconceptions About the Contestability Period
Many people assume that the contestability period is short and that insurance companies do not actually deny death benefit claims based on false or misleading information provided in an application. The truth is that the contestability period lasts two years from the date that the policy was issued. During this time, an insurer can challenge any claims if it can find evidence of misrepresentation.

Let’s say that an insured died one year after a policy’s effective date. According to the life insurance application, the insured was not a smoker. However, medical records dating back to before the insurance policy began show that the insured was an active smoker. The insurance company may be able to deny the death benefit payout due to misrepresentation.

How To Navigate the Contestability Period Successfully
The key to successfully navigating the contestability period is providing accurate information and disclosing all relevant information during the application process. This includes providing detailed answers about any pre-existing medical history or lifestyle factors that could affect your risk level, such as smoking cigarettes or participating in extreme sports or activities like skydiving. It is also important to make sure that any additional paperwork requested by the insurer is completed fully and returned promptly so that their investigation process can continue without delay.

It is also worth reviewing your policy documents a few months after coverage begins. That way, you can swiftly correct any accidental ommissions.

Working with an experienced agent or broker who understands life insurance can also be helpful when navigating the contestability period. Not only will they help you understand what information needs to be disclosed on your application form, but they will also provide advice on how best to present yourself for underwriting approval in order to maximize your beneficiaries’ chances of success at claim time. Ultimately, having a professional on your side to help guide you through the process can make all the difference when it comes to ensuring your life insurance policy is fully effective.

Contestability Period vs. Incontestability Clause
The contestability period and the incontestability clause are two important features of a life insurance policy. The contestability period is the two-year timeframe during which the insurance company can investigate your insurance application if the insured person dies. If any inaccuracies or fraud are discovered, it can deny or reduce coverage.

An incontestability clause states that once a policy has been in force for a certain amount of time (usually two years), it cannot be challenged by an insurer on any grounds unless there is definite proof of fraud at that time. Once an insurance policy becomes incontestable, even if a material misrepresentation was made when applying for coverage, it cannot be challenged.

Not every life insurance policy has an incontestability clause that removes a challenge to a claim, in whole or in part, if fraud is discovered.

Suicide Clause and Contestability Periods
Many life insurance policies include a suicide clause, which typically states that if an insured individual dies by suicide within a certain period after signing up for the policy, then the beneficiaries will not receive any benefits from the policy. This clause is designed to prevent fraud.

In most states, this clause has a two-year window and overlaps with the contestability period, during which insurers can investigate any misrepresentations or inaccuracies on a policyholder’s application. This means that even if all relevant information was accurately disclosed at the time of application, if an insured party dies by suicide within this two-year period, then the insurer can deny the claim. If the death occurs outside of this timeframe, it will be treated like any other cause of death.

Final Thoughts On Life Insurance Contestability Periods
Understanding the two-year contestability period is essential for anyone looking into obtaining life insurance coverage. It is important for applicants to disclose all relevant medical information, as well as facts about their lifestyle, accurately and honestly, to avoid potential claim denials down the road during this two-year window after policy approval.

Malaysia Life Insurance Penetration at 45.5 %

The insurance and takaful sector are crucial in protecting individuals and businesses against a variety of unforeseen risks and contributes to advancing an inclusive, resilient society. In 2024, 45.5 per cent of Malaysians have at least one life insurance or family takaful policy, an increase from prepandemic levels of 41.5 per cent in 2019.

Life insurance and family takaful policies typically see higher uptake in urban areas like Kuala Lumpur and Penang, in tandem with greater awareness on the importance of protection. Throughout 2024, there were over 530,000 subscriptions of microinsurance and microtakaful products under the Perlindungan Tenang (PT) framework.

Since the launch of the revised PT policy document17 and the implementation of the PT voucher programme in 2021, its cumulative take-up has grown significantly and currently stands at 4.9 million subscriptions. 

This is roughly 49 times the take-up rate since the launch of the PT framework in 2017 up to 2021. A total of RM17 million in claims was paid out in 2024, showing an increase of 20 per cent compared to 2023.

These claims payouts were against unexpected and adverse life events like deaths, personal accidents and critical illnesses.

Amazon Disrupt Used Car

If you thought there wasn’t absolutely anything you couldn’t buy on Amazon, time to update yourself! Because now, Amazon has started selling used cars in its platform! What began as an exclusive deal with Hyundai at the end of 2024 now extends to second-hand vehicles and other models, wow!! You didn’t expect that either, did you? Amazon is once again shaking up the industry!

From selling books to selling your next car - That’s right, Amazon wants to expand the market and now not only with Hyundai models, any CPO (Certified Pre-Owned) vehicle can be sold on its platform. Incredible if you ask us! How will the delivery guy bring the car to your house? But think big, with this change, Amazon wants to compete against Carvana, Ebay Motors, or Alibaba, they’re already in the game!

How would it work? - As easy as it gets, just like buying dinnerware for your kitchen, just as fast. You’ll be able to manage financing, leasing, paperwork, and even trade in your old car in principle, and all without having to go look at cars or sign a pile of documents. Of course, the car has to be in optimal condition for Amazon to allow it on their platform, not just anything goes!

What is a certified car? - CPO (Certified Pre-Owned) are used vehicles that have gone through an exhaustive inspection and come with an additional warranty.

What does Amazon get out of this? - Think about it, the car market is super expensive and not many people can buy a brand-new one, so second-hand cars are becoming more popular. Amazon doesn’t have to do much because the market already exists, it just puts its platform and logistics on the table to play too (and make money from it, obviously, Bezos doesn’t do anything out of the kindness of his heart).

Buying a car without getting off the couch - A few years ago it seemed weird to buy clothes without trying them on, today there are people buying their car from their living room!! Amazon knows that. And plays its cards with an offer that not only promises convenience but also safety and support.

Amazon comes to change the rules of the game - This is not an experiment. Amazon wants to stay in the automotive world. And yes, the change has already begun. And now, besides clothes or dishwashers, you can also add your car to the cart.

Life Insurance Super Agent

Insurtech Superagent AI issued a press release yesterday to announce its goal of starting the first fully autonomous AI insurance agent by the end of theInsuretech Superagent year.

Insuretech Superagent AI is not just reshaping insurance. It wis redefining what it means to be an insurance agent. Its fully autonomous AI agents will eliminate human error, offer superior client interactions 24/7, and fundamentally alter industry expectations.

Digital Agent - The San Francisco-based firm founded this year said the artificial intelligence agent will handle insurance advisory, sales, and customer service at all hours of the day—”more efficiently than traditional agents.”

The venture capital-based company appears ready for what it called “intense industry debate,” and predicts that traditional agents “will drastically evolve or risk obsolescence.” The insurtech said it welcomes debate and dialogue with the insurance community.

Superagent AI said it sees a new operating model—one person managing multiple AI insurance agents. “Human agents will evolve from individual contributors to strategic managers overseeing AI-powered sales teams.

In the meantime, Superagent AI said has developed interim solutions. The flagship offerings are called BOOT|camp and LIVE|assist. They will debut publicly in September. Superagent AI claimed the products will “cut new-hire ramp-up time by up to 50%, boost close rates by double digits, and reduce average call-handle time through AI-driven training, real-time call assistance, automated objection handling, compliance alerts, and intelligent client-engagement prompts.”

Kodak 133 Years - Possible Bankruptcy

After 133 years, a bankruptcy and multiple reinventions - Kodak's latest snapshot is grim: The company says there’s “substantial doubt” it can stay in business. Kodak’s management raised serious concerns about its ability to continue operating over the next year. The warning stems from roughly $500 million in debt maturing within 12 months and the lack of committed financing to cover those obligations. Without new funding or successful refinancing, the company could default.

Deep strains in earnings - For the second quarter ended June 30, Kodak booked $263 million in revenue, which was down 1% from a year earlier. However, the real blow came from the bottom line: Profitability took a sharp hit compared to last quarter, with gross profit sinking 12% to $51 million, squeezing Kodak’s margins from 22% to 19%. What had been a $26 million profit in the same period last year flipped 180 degrees to a $26 million loss. Operational EBITDA slipped to $9 million from $12 million, as significantly lower sales volumes and surging manufacturing costs overwhelmed relatively modest price increases.

Cash reserves also slimmed down. Kodak ended the quarter with $155 million on hand, just $70 million of it in the U.S. That’s $46 million less than it had in December, drained by rising costs, and weaker operating results.

Kodak is counting on a somewhat random source of liquidity: terminating its U.S. Kodak Retirement Income Plan and using excess assets to pay down debt. It expects clarity by mid-August on how it will settle obligations to plan participants, and aims to complete the process by December.

Kodak’s long fall - Founded by George Eastman in the late 19th century, Kodak revolutionized photography by democratizing film, making cameras affordable for the masses. Its slogan—“You push the button, we do the rest”—became synonymous with convenient sentimentality. At its peak in the 1970s, Kodak controlled nearly 90% of U.S. film sales and 85% of the camera market.

Then the digital revolution upended the industry, and Kodak stumbled. In a twist of irony, it was a Kodak engineer who created the first digital camera—but, fearing the innovation would cannibalize their current product, the company sat on the invention. They bet on film being a source of nostalgia, even as digital cameras took over the market with a promise of even more convenience.