CIMB Dirty Trick - Exposed

The exclusion of liability clause cannot shield a bank from being sued for negligence, ruled the Court of Appeal.

The judgment was in regards to a suit brought by British couple Anthony Lawrence Bourke and Alison Deborah Essex Bourke against CIMB Bank Bhd over a banking error that cost them a piece of property in Kuala Lumpur.

The Bourkes had taken a loan from CIMB Bank in 2008 to service their monthly instalments.

However, the bank failed to make payment on one of the invoices, resulting in the developer terminating the entire Sale And Purchase (S&P) with the couple.

Justice Rohana Yusuf ruled that the exclusion of liability clause of the agreement between the bank and the Bourkes cannot be sustained and cannot absolve the bank from liability in contract or tort.

Justice Rohana, who had chaired a three-man panel together with Justices Vernon Ong Lam Kiat and Hasnah Mohammed Hashim, also found that based on the records, it was clear that the bank was liable for the non-payment of the invoice.

This overturns the Kuala Lumpur High Court Judge Noorin Bada­rudin’s decision on Sept 5 last year to dismiss the Bourkes’ suit, on the grounds that Clause 12 of the agreement excludes the bank from liability in a suit.

During the appeal hearing yesterday, the Bourkes’ counsel Ong Yu Jian argued that the all-encompassing exclusion liability clause which protects CIMB went against public policy and was in contravention of Section 29 of the Contracts Act 1950, which was to protect public interest.

He submitted that though Malay­sia does not have the United Kingdom’s equivalent of the Unfair Contract Terms Act to prevent parties from making unfair contracts, Malaysian Common Law should recognise the patent unfairness in such clauses and instead protect the public, which have no choice but to agree to such clauses when dealing with banks.

Ong told reporters the decision was a landmark, in allowing a bank to be sued for acts of negligence despite the presence of such clauses.

“This decision would improve the standards of the banking industry as a whole, as it would make banks more careful and accountable to their customers in their day-to-day dealings,” he said.

Lawyers Wong Hock Mun and Sharifah Alliana Idid acted for CIMB.

The Bourkes filed the suit at the KL High Court in 2015 for da­mages of around RM1.1mil over the loss of the purchased luxury condomi­nium along Jalan Sultan Ismail, in Kuala Lumpur developed by Crest Worldwide Resources Sdn Bhd.

The damages were for the RM273,996.24 they had paid to the bank, and RM747,481.42 for losses caused by the termination of their property contract.

Kelantan Forestry Bullies

Freelance journalist Jules Rahman Ong said he will not agree to “settle” his case with the Kelantan forestry department for allegedly entering the forest without a permit.

“We would not want to settle because if we do admit, then it gives the right to the state government to curtail our rights.

“As journalists, we are doing our jobs in reporting the facts,” he said, referring to him and cameraman Too Chee Hung. Ong and Too were arrested on Jan 24 by the state forestry department for filming the authorities dismantling an Orang Asli blockade in Gua Musang, Kelantan.

Both of them were later released on bail. They also claimed forestry department officials had intimidated them by shouting and confiscating their equipment when they were arrested.

He said they were persuaded by one of the officials to “settle their case out of court” when they returned to the department to report themselves, two days ago. “The officer told us he had yet to send the investigation papers to the Attorney-General’s Chambers.

“He gave us an offer, that is, for us to admit to the offence under Section 47(1) of the National Forestry Act and pay a fine,” Ong said, adding that he did not respond to the officer’s suggestion.

“We will wait for the AGC’s decision,” he said. Ong also said he has to be mentally and financially prepared should the attorney-general decide to proceed with the charges proposed by the forestry department. 

“Telling the truth is a dangerous business in Malaysia,” he said.

Ong said the documentary on the Orang Asli, entitled “Get Real: Fighting for My Home” will be premiering tomorrow night (Feb 28) on Channel NewsAsia (CNA).

Tips To Save Money On Life Insurance

Life insurance is a promise from an insurance company to pay a specified sum to someone you choose — your beneficiary — at the time of your death. One of the best uses of life insurance is to protect anyone who relies on you financially, such as a surviving spouse or dependent children. Life insurance also has more advanced estate planning uses, such as preserving cash flow to pay estate taxes. 

Two basic types of life insurance are available: term and permanent. Term life insurance remains in force for a specified period of time. Permanent life insurance includes a savings component, which you can withdraw or use to help pay premiums.

Life insurance can vary widely in cost, from as little as about $500 a year for a young, healthy term applicant to 10 or 20 times as much for an older, permanent life applicant — and even more for smokers. In order to get the right amount of coverage without spending more than necessary, here’s how to save money on insurance for a life policy.

1. Buy Term, Not Permanent

The easiest way to save money on life insurance is to buy a term life insurance policy instead of a permanent one. Term insurance offers no savings component, which means all of your money goes toward insuring your life.

Permanent life insurance lasts a lifetime instead of 10 or 20 years like a term policy. In addition, permanent insurance — including whole life insurance — always has an additional savings or investment platform, and that costs money.

2. Shop Around

You can visit an agent for an in-person evaluation, but many insurance issuers will give you quotes over the internet if you provide your basic medical and demographic information. However, the lowest price you receive might not be the best policy for you. Before you commit, consider a range of factors — including the insurer’s financial stability and its claims-paying policy.

3. Buy Only the Coverage You Need

Insurance can be expensive and you shouldn’t buy more than you need. But you might not quite know the answer to the question, “How much life insurance do I need?” To figure that out, decide what you’ll want covered in the event that something happens to you. Generally, people buy life insurance for two main reasons: to replace lost income or pay off debt obligations after they die.

To replace lost income, one formula suggests that you should buy coverage equal to 15 times your current salary, which means your beneficiary would likely get 75 percent of your salary. If your goal is to pay off existing debt after your death, don’t overlook any of your obligations, including your mortgage, credit card debt, tax liens or student loans.

4. Ask for Discounts

When you’re shopping around for life insurance, don’t forget to ask what discounts are available — they might vary among companies. For example, some companies might offer discounts if you buy certain levels of life insurance, such as $250,000 rather than $200,000.

One insurance company offers a 15 percent discount on certain policies if you can show you lead a healthy lifestyle. Others might offer discounts of up to 5 percent if you enroll in an autopay program.

5. Buy Sooner Than Later

One of the key factors in determining the cost of insurance is your likelihood of mortality. An insurance company calculates your average life expectancy by using actuarial tables based on historical and other data.

As a result, the older you are, the more likely it is that your insurance premiums will be higher. Buy a policy when you’re relatively young and your premiums will probably be lower.

6. Take Care of Yourself

You can’t stop yourself from aging. However, you can make healthy lifestyle choices that might put you in a less expensive insurance category.

For instance, smokers have a higher mortality rate than nonsmokers, and they have to pay higher insurance premiums. If you’re overweight, you might also fall into an unfavorable rate category and have to pay more. By modifying these behaviors, a life insurance candidate can turn penalties into savings.

7. Buy an Automatically Renewable Policy

If you’re young and healthy when you apply for term insurance, try to get a policy that’s guaranteed renewable. You’ll pay more for this type of policy as you age, but the insurance company won’t raise your rates based on your overall health. This can result in tremendous cost savings if you end up with a serious illness or your health rapidly deteriorates.

8. Take Advantage of Group Insurance

Although insurance isn’t a product you can buy in bulk, you can participate in your employer's health insurance plan - which typically includes life insurance — and benefit from group rates and from your employer paying part of your premium. Whether or not you can get cheaper insurance on your own will depend on your individual risk factors — such as age and health — but you might find that group insurance saves you money.

Jinerxu Pushes U-Life

U for Life is partnering with Jinerxu, the company behind financial comparison website, RinggitPlus, to offer a a seamless online application experience for insurance products.

“Customers can be rest assured that their basic protection needs can be met through rising insurance technology (insurtech) and financial tech (fintech) players. There is a need for both insurtech and fintech to join forces to engage the digital-savvy customers and move towards the online space – increasing efficiency and productivity,” said U for Life Sdn Bhd general manager Kenny Thing.

“Our consumers are so empowered in this digital era, and serving them with additional options for insurance to their convenience will serve to bridge the protection gap in the country which is sorely lacking,” he added.

According to Jirnexu chief commercial officer Lucas Ooi, Malaysians are now prepared to purchase insurance online when the insurance provider offers a market competitive product via a digital platform.

"By offering simple term life products such as U for Life, RinggitPlus experienced a 200% growth in digital insurance applications in 2016," he said.

The partners hope they will be able to meet Bank Negara Malaysia’s aspiration of 75% insurance penetration rate in Malaysia by 2020, as well as to create opportunities for U for Life to create dynamic online services and segments. U for Life was launched in 2015.

Code Of Practice PDPA

The Code of Practice on Personal Data Protection Act (PDPA), launched on Friday, is expected to further boost the consumer confidence in the integrity of the insurance and takaful industry.

The code is an initiative by three associations - Life Insurance Association of Malaysia (LIAM), General Insurance Association of Malaysia (PIAM) and Malaysian Takaful Association (MTA) - to set up strict procedures to safeguard the use of personal data in the life, general and takaful insurance. 

LIAM president Toi See Jong said under the PDPA, the consumer’s data would be properly capped, accurate and protected.

“Previously, the company individually applied the code of practice, but now we consolidate and put in together to ensure it is a consistent practice by the industry players.

“We (LIAM, PIAM, MTA) worked closely for almost one year to come out with the code, so that all the players will have the same practices, otherwise, it may be different in terms of how they handle the confidential customers’ data,” he told Bernama after the code’s launch and signing ceremony in Kuala Lumpur on Friday.

He said continuous training would be provided for all the insurance and takaful staff, especially the frontliners.

“Apart from the requirements under the code, all insurance companies and takaful operators have to put up privacy notices to their policyholders and potential customers through various media such as websites, letters or announcements,” he said. 

Malaysia Takaful Update

The takaful (Islamic insurance) industry saw double-digit growth in 2016, according to Malaysian Takaful Association chairman Muhammad Fikri Mohamad Rawi. It suffices to say that last year was another year of good growth for takaful with double digits,” he said, declining to reveal further details, prior to the announcement on the industry’s performance scheduled for next month.

The Malaysian life insurance industry charted 16.2% growth in 2016 with a total Annual Premium Equivalent of RM5.71 billion compared with RM4.91 billion in 2015. This was partly due to the sale of products with shorter premium terms. Coverage provided by the life insurance industry for 2016 was valued at RM1.3 trillion, 4.8% more than the RM1.24 trillion registered in the previous year.

Speaking to reporters at the launch of the insurance and takaful industry’s Code of Practice on Personal Data Protection at Lanai Kijang, Life Insurance Association of Malaysia president Toi See Jong said the industry is rooting for single-digit growth this year, despite registering double-digit growth last year.

On the general insurance front, the growth rate was half of that of the previous year, at 1.1% compared with the 2.2% in 2015, and with a gross written premium income of RM17.67 billion.

The insurance and takaful companies came together last Friday to launch the Code of Practice handbook in an effort to safeguard the use of customers’ personal data and to establish the procedures related to the issue.

“ The code sets out the best practice to harmonise the principles to safeguard personal information that is collected and processed and would only be disclosed to approved parties, said Datin Veronica Selvanayagy, chairman of the task force on the Personal Data Protection Act.

“It also addresses the rights of policyholders or data subjects and the penalty that will be imposed on failure to comply with the Act,” she said.