Friday, December 9, 2016

UBB Cash Trust 现金信托

有兴趣者请联络 或 013-3141593.

Who are Corporate "Trustees"?

There are a number of more well known Corporate Trustees, example:-

Beside Estate Planning purposes, Trust Companies are not so well known for their other products / services, including but not limited to:-
  • private trust
  • insurance trust
  • Declaration of trust
  • Stakeholder & Escrow Services
  • Interest Scheme
UBB Cash Trust and Rockwills's Declaration of Trust are the example of how Trust can be creatively used as a "product" to solve financial problem, i.e. how to protect your asset and distribute it fast accordingly to your wishes.

In order to setup a Trust Company, one have to get approval from SSM, and Bank Negara.

  • What is TRUST?
  • Governed under Trustee Act 1949 (Revised 1978), a Legal / Legitimate way for financial planning.
  • Assets can be hold by a TRUST including CASH, Property, Shares etc. 
  • A TRUST is an effective way for wealth distribution, alive or dead

Interesting Fact About Trustee Act - Authorised Investments


Section 4 of the Trustee Act 1949

Authorized investments

4. (1) A trustee may invest any trust funds in his hands, whether at the time in a state of investment or not, in manner following: 
(a) in any of the securities of the Federal Government or the Government of the State of Sabah or the State of Sarawak or of the Republic of Singapore;
(b) in any securities the interest on which is or shall be guaranteed by Parliament or by the Federal Government; *NOTE--All references to "West Malaysia" shall be construed as references to "Peninsular Malaysia"­ see Interpretation (Amendment) Act 1997 [Act A996], subsection 5(2). Laws of Malaysia ACT 20812
(c) in or upon titles to immovable property in Malaysia, such titles being freehold titles or grants in perpetuity or leases (other than mining leases) for a term thereof sixty years at least is unexpired at the time of such investment: Provided that--
(i) the land to which any such title relates shall be situate within the limits of any City, Municipality, Town Council or Town Board area; and
(ii) there be erected on the land to which such title relates houses or other buildings the gross rental whereof, together with the land appurtenant thereto, is at the time of such investment not less than seven per centum of the purchase price of the land, in the case of the purchase price, or of the value of such land, as ascertained under paragraph 12(1)(a), in the case of a charge.
View The Trustee Act 1949 here.

Sunday, November 6, 2016

Motor Insurance - Betterment


A lot of people do not consider wear and tear as their own to bear. 

The legal principle of indemnity states that insurers will put the insured in the same position as he was immediately before his loss. 

If one’s vehicle is 10 years old, wear and tear would have taken its toll whether you like it or not. Therefore, if there is a loss, since the workshops cannot readily source and give you a 10-yearold part, a new part will be the next best choice. 

But, relying on the principle of indemnity, the insured benefits from this new part and so he has to pay for the betterment aspect. Note that betterment is only applied to the part that is replaced and not to the workmanship charges.

Below is the Standard Betterment Table, base on age of vehicle.

Motor Insurance - The BETTERMENT Factor

WE refer to the letters “Baffled by insurance coverage rule” (The Star, Aug 20), “It pays to understand insurance” (The Star, Aug 25), “Make changes to benefit the consumers” (The Star, Aug 27) and “Motor insurance policy 101” (The Star, Aug 28).
Persatuan Insurans Am Malaysia (PIAM) welcomes the comments of the writers and would like to clarify some of the issues highlighted.
As rightly pointed, the basis of a claim is to put the owner in the same condition as he would have been in before the accident occurred.
Betterment will apply when in the course of repairing an accident-damaged vehicle, a new franchise part is used to replace an old part. It will be based on a scale of betterment adopted by the insurance industry.
For vehicles above five (5) years, the rate of betterment ranges from 15% to a maximum limit of 40% for vehicles of 10 years and above.
Conceptually, betterment will be taken into account if new parts are used to replace the damaged parts as the vehicle will be in a better condition after the repairs than it was before the accident.
Of course, if reconditioned parts are used, then “betterment” will not apply. If the owner does not agree to pay for his “betterment” factor, then he will have to wait for the workshop to source for reconditioned or second-hand spare parts.
Availability of spare parts depends on the market and insurance companies have no control over it, especially where the vehicle is an old or special model.
It appears that “More Than Frustrated” has been communicating with the workshop rather than with the insurance company involved and may therefore be getting incomplete information.
PIAM advises the writer to contact his insurance company directly. Alternatively he can call the Accident Assist Call Centre at 1300 22 1188 or contact PIAM at 032274 7399 or for assistance.
PIAM would like to advise policyholders with comprehensive motor policies to submit their own damage knock-for-knock (KfK) claims to their respective insurance companies if third parties are clearly at fault. This will expedite claims processing, similar to own damage claims, as the workshops are in the insurance companies’ panel. In such cases, the policyholders’ no claim discount (NCD) entitlements will not be affected.
With regards to determining the sum insured value under a comprehensive motor policy as raised by “Overcharged Customer”, insurance companies are required to advise consumers during the pre-contractual stage or renewal of motor policies on the market value of a vehicle based on a credible motor vehicle valuation database.
This was one of the initiatives implemented by Bank Negara Malaysia in 2011 to reduce the subjectivity in determining the market value of a vehicle and enhance consumer protection.
Insurance companies are also required to educate consumers on the importance of insuring the vehicle at the appropriate market value and the effect of over-insurance and under-insurance when a claim is made.
If the market value of a vehicle at the time of loss is higher than the sum insured by more than 10%, the insured would need to bear a portion of the loss in proportion to the under-insurance.
On the other hand, it would be a waste of money to over-insure as the insurance company would not pay more than the market value.
Prior to the purchase or renewal of insurance, consumers may wish to obtain a free estimate of the market value of their vehicle at This is a one-stop site that furnishes you with information about your vehicle.
Policyholders are advised to read the terms and conditions of their motor policy carefully so that they are fully aware of their insurance cover and what they can claim in the event of an accident.
Relevant consumer information on Useful Guide and Motor Accident, etc. are readily available on PIAM’s web-site
Chief Executive Officer Persatuan Insurans Am
Published on AMI website in September 2015

Motor Insurance Policy 101

I REFER to the letter “Baffled by insurance coverage rule” by More Than Frustrated ( The Star, Aug 20).
Having worked in the insurance industry for more than 40 years, I would like to respond to some of the writer’s comments.
While he has experienced a lot of frustration, which is usual for the man in the street, a lot concerns ignorance about insurance.
Generally, the poor perception of insurance – either people do not want to know, assume things from their own perspective, do not want to read the policy terms and conditions or are totally ignorant of laws relating to insurance – is probably the crux of the matter.
Firstly, there are insurance laws and principles. A lot of people do not consider wear and tear as their own to bear. The legal principle of indemnity states that insurers will put the insured in the same position as he was immediately before his loss. If one’s vehicle is 10 years old, wear and tear would have taken its toll whether you like it or not. Therefore, if there is a loss, since the workshops cannot readily source and give you a 10-yearold part, a new part will be the next best choice. But, relying on the principle of indemnity, the insured benefits from this new part and so he has to pay for the betterment aspect. Note that betterment is only applied to the part that is replaced and not to the workmanship charges.
There are also high usage items – for example the tyres of your vehicle – and if they need to be replaced due to an accident, insurers will only pay for the unused portion. The principle is really the same. This is not what the insurers want to do but they have to follow established legal principles.
Policy holders should read the policy terms and conditions. If they don’t, they cannot assume things from their own perspective and feel that they are “victimised” and resort to the “Why should I pay since I have a comprehensive policy” syndrome.
On the betterment issue, I believe Bank Negara has approved the scale set forth in the insurance terms and conditions of the policy and this has been practised for many years. Also, it is good to know that insurers have agreed not to apply betterment for vehicles under five years.
If one is not agreeable with the terms and conditions of the policy, don’t take up a comprehensive policy. Take up a third party policy instead and bear the repairs or theft of your vehicle on your own.
The insurance policy carries various terms, conditions and exclusions and it is important that a policy holder reads this thoroughly. Terrorism is now a major issue worldwide, and it is specifically excluded by the policy. Even the act of a passenger opening the door and causing damage or injury to a third party motorcyclist is not covered by the policy but this can be extended under the policy on payment of an additional premium.
When they are affected by an accident for which terms are not covered by the standard policy, many consumers have held the view that all the perils should be covered as a standard cover. But on the other side, is it fair to other policyholders to have “everything” covered and force others to pay the premium? This issue is open to debate but there is no solution to suit everyone.
I would also like to say that consumers “feel the pinch” of the premiums they pay (some claiming that they are very expensive) but do not really know what the premiums are collected for.
If you buy a comprehensive insurance policy, you are not only paying for the damage/theft aspect, which insurers commonly refer to as Own Damage, but also for the injuries to third party and damage to third party property.
While over the years, many road safety initiatives have been carried out to reduce the high volume of road accidents and therefore the cost of motor claims, unfortunately our accident rate has not decreased.
For such injury claims, policyholders do not get to see the cost of injuries which insurers have to pay for the motor drivers’ negligence in causing death or bodily injuries to third parties.
These pay-outs from court cases go into the millions of ringgit. The loss ratios for such bodily injuries have, for many years, exceeded 100% of the premiums collected. And that is why insurers have been clamouring for increased premiums.
The motor rules will change in the years to come and the tariff will be removed by next year. In Western countries, motor insurance for bodily injury cover alone costs RM400-RM500 per vehicle and the premiums are increased yearly. All these are pegged to the claims costs, and if overall motor claims costs are not reduced, as consumers we will have to get used to paying higher premiums.
There are many other issues relating to insurance but it is not possible to cover all in this letter.
Nevertheless, knowledge of insurance is an important part of our lives and understanding your rights and obligations will help to clear many misconceptions.
I can only conclude that if you want to drive, you will need to learn the highway code and the practical aspects of driving, and passing your competency test. 
If you wish to purchase an insurance policy, don’t you agree that you have to read your contract?
Source – The Star (28 August 2015)
Published on AMI in year 2015

Tuesday, October 6, 2015

Will-Writing is just the First Step in Estate Planning

Most people believe Will is the only thing they need to concern about, and a Will is just a simple paper, therefore should not cost more than a few hundred ringgit.

Estate Planning is a concept of how, when, what are the ways, to distribute ones wealth after or even before this person pass away.

There is a danger of under estimate the importance of having a proper planned Will and overall Estate Planning, simply having a Will drafted may be worse than having a Will drafted. Why?

If a person don't plan well, using just a standard Will template to draft his / her Will, without the detailed knowledge of the relevant pitfalls, his / her beneficiary may ended up not getting the estate.

Therefore, it is important to get a qualified Will writer, as you only 'test' the Will when you need to use, you can not afford to make a mistake.