Friday, September 22, 2017

Investing can be defined as

the act of committing money (or capital) to an endeavour with the expectation of obtaining an additional income or profit.

In layman word,

I invest so i don't spend it today, i stand to get more to spend in future.

Wednesday, September 6, 2017

Is AirAsia's Travel Insurance worth buying??

TUNE PROTECT is brand name for Tune Insurance Malaysia Berhad. A sister company of AirAsia.

When you buy air tickets from likely you can just sign up for Travel Insurance with a "tick" only.

In the past, we did a comparison, the coverage is not worth the price.

However, in 2017, it has changed.

You should buy TRAVEL INSURANCE, regardless Domestic Flight or International Flight.

Click here to BUY and get a 25% discount.

SME, are you well protected?

There are five (5) main category for SME Insurance.

  1. Assets
    1. Fire & allied perils
    2. Burglary
    3. All risks
    4. Electronic equipment
    5. Machinery breakdown
    6. Glass
  2. Revenues
    1. Fire consequential loss
  3. Pecuniary (i.e. relating to or consisting of money.)
    1. Money & Money in Transit
    2. Fidelity guarantee
  4. Liabilities
    1. Public Liability
    2. Employer's Liability
    3. Product Liability
  5. Employee Benefits
    1. Group Personal Accidents
    2. Group Hospitalisation & Surgical
    3. Workmen Compensation (foreign workers)
Fun Facts [boring to read]
  • Average of RM400 million in fire claims is incurred every year, industry wide.
  • SME insurance provide SME an Immediate Fund Relief upon coverage confirmation, up to 50% provisions for working funds of the agreed estimate in the event of a major claim.
What are the MOST COMMON SME Claims?
  • Damage to insured property due to fre & perils
  • Burglary & robbery
  • Loss of Money
  • Third party bodily injury & property damage
  • Damage to insured glass and signage.

Still not sure what is SME INSURANCE?

Coverage for Fire & allied perils 
  • protects property against loss or damage by fire, lightning and domestic gas explosion.
  • covers indirect loss proximately caused by fire such as heat damage, smoke damage, water damage by the fire brigade and losses incurred in attempting to check the spread of fire or to save the property.
  • May extend to cover 24 types of perils by paying additional premium. Important perils are....
    • Storm, tempest
    • Riot, strike and malicious damage
    • Flood
    • Earthquake or volcanic eruption
    • Explosions
    • Bursting of pipe and water tanks
Coverage for Fire Consequential Loss
  • Provides coverage against loss of profits or revenue, as a result of interruption in business operations due to fire or any perils insured under the Fire Section.

Coverage for All Risks
  • Provides protection for all risk (direct physical loss and/or damage) due to accidental external causes to equipment, plant and machinery.
  • Cover includes:
    • Fire
    • Perils that are covered in the fire policy.
    • Accidental external damage
    • Burglary / robbery
    • Theft (excluding theft by deception/cheating)
Coverage for Burglary
  • Protects property against loss or damage due to burglary or robbery whilst contained within the premises.
  • Types of cover:-
    • Burglary - cover theft due to actual forcible and violent entry into the insured's premises
      • Visible marks or physical damage to the exterior of the premises made by tools, explosives, electricity, chemical etc must exist.
    • Robbery - cover the insured property against violence inflicted upon the insured or by putting the insured person in fear of violence.
Coverage for Money
  • Provide protection against loss of money/securities as a result of burglary or robbery.
  • Cover includes:-
    • Robbery with the premises
    • Safe burglary - to pay for loss of money and securities from within the vault or locked safe or locked cash register or locked drawer or locked steel cabinet by burglary or attempt thereat.
    • Robbery outside the premises (Money In Transit)
Coverage for Glass
  • Provide coverage for breakage of glass/signboard or by chemicals accidentally or maliciously applied.
  • Cover includes:-
    • payment of repair or replacement of frames,
    • payment of installing temporary plates.
    • payment of removing or replacing any obstructions other than window displays when necessary in replacing such damaged glass, lettering or ornamentation.

Friday, December 9, 2016

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