Saturday, October 18, 2014

Fire Insurance - The Common mistakes

There are two common mistakes in which money is wasted on insurance to protect your home — 
1. over-insuring and 
2. selecting the wrong type of policy. 

Many people make one or both mistakes.

The question that begs an answer from the insurance agent or the insurer is how to determine the sum insured for the house.
Very often they do not give a direct answer or a formula to calculate to avoid committing themselves and getting the blame when things go wrong in future. Their usual advice is to insure the house according to the market value of the property.
Does it mean that a standard 22’ x 75’ double-storey house valued at RM1,000,000 should be insured for that sum?
Over-insurance is not worth it
Even if the owner insures his house for RM1,000,000, the insurance company will not pay that amount to the insured in the event the house is totally destroyed by fire. Surprised?
That is because the sum insured also includes the value of the land on which the building sits and land cannot be destroyed by fire — only the building and its contents can be destroyed. Earthquake, soil erosion and land subsidence, however, can destroy the land.
Most likely, the insurer will pay the cost of replacement or reconstruction of the house. Currently, it costs about RM350,000 to build this type of house with standard finishings.
Therefore, the sum insured should be a little above this amount, say, RM400,000, to include incidental costs such as architect’s fees and removal of debris. Any amount above this figure is superfluous and wasteful.
Just by understanding how the insurance companies assess claims and insure accordingly, the premium will reduce by 60%.
Again, don’t expect the insurer to pay RM400,000 if the house is burnt — only the damaged parts will be assessed and compensated.
Generally, the amount to be insured can be determined by multiplying the built-up area by the cost of construction.
After consulting a reputable architect and a friend who is a property developer, I arrived at the estimated costs of constructing different types of houses — 
  1. RM180 psf of built-up area for double-storey houses, 
  2. RM350 psf for bungalow with standard finishing, and 
  3. RM600 to RM700 psf for bungalow with high-quality finishings.

While over-insuring is wasteful, under-insuring will subject the insured to bear a proportionate amount of the loss because he is deemed to be the insurer of the shortfall in the sum insured.
So, be very careful when deciding the appropriate amount.
Choose your coverage
The other common mistake is selecting the wrong type of policy.
There are two types of policies to cover residential properties — 
  1. fire insurance, and 
  2. houseowner insurance.

The former offers basic coverage against fire, lighting and explosions and the latter has more comprehensive protection against these perils and others including windstorm, tempest, earthquake, volcanic eruption, flood, loss caused by aircraft, explosion, road vehicles and animals, bursting or overflowing of water tank or pipes and electrical installations.
As we know, houseowner insurance costs a lot more than fire insurance. For a sum insured of RM400,000, the premiums on houseowner and fire insurance are RM464 and RM248 respectively.
There is a saving of RM216, or 46.5%, if only fire insurance is chosen.
If it costs so much less to buy fire insurance, why are so many insured under houseowner insurance?
Often, those insured did not select houseowner insurance but the banks that granted them the mortgage loans did it for them, without giving them a choice.
In fact, most mortgage loan agreements have a clause requiring the borrower, usually the insured, to buy fire insurance on the mortgaged property, failing which the bank is authorised to buy it on the borrower’s behalf and charge the premium to him.
Banks take the liberty to buy houseowner policy which offers more comprehensive coverage at much higher premiums to safeguard their own interests as well as to earn a higher commission from the insurance companies.
If the borrower decides that fire insurance is sufficient, he can instruct the insurance company to cover his property with only fire insurance.
I must add that each owner opting for fire insurance must carefully consider the various risks his property may be exposed to and, if necessary, extend the policy to cover perils or hazards like flood and earthquake by paying additional premiums.
Generally, for landed properties located on flat land away from rivers, ponds or slopes, fire insurance with RSMD (riot, strike and malicious damage) extension is sufficient.
Substantial savings
Correcting these two mistakes brings substantial savings in premiums. A houseowner policy with a sum insured of RM1,000,000 costs RM1,160. Assuming the owner has carefully analysed the risks and decided that a fire policy of RM400,000 is sufficient, the premium is only RM216. He will save RM944 every year by doing a little homework. Naturally, these savings will multiply if he has more than one property.
If the house has been renovated or extended, the cost can be added to the sum insured. It is prudent to keep the building plans, quotations, receipts and photos of the renovated areas to support a claim if the unfortunate need arises in the future.
Furniture, fixtures, home appliances, electronic equipment, personal effects, jewelries can also be insured under house-holder insurance, or under fire insurance (contents section).
The above tips will help anyone to review their property insurance and make adjustments if necessary. In doing so, a lot of money will be saved in the years to come.
About the Author
Chermaine Poo is a chartered accountant turned actress, TV host and professional emcee. If you have questions on money matters, send her an email at info@chermainepoo.com. Follow her on social media at Facebook.com/ChermainePoo, Twitter.com/ChermainePoo and Instagram.com/ChermainePoo.

A CONSUMER EDUCATION GUIDE FROM PIAM - FAQ ON PROPERTY/LIFE INSURANCE

FAQ ON PROPERTY/LIFE INSURANCE 
- A CONSUMER EDUCATION GUIDE FROM PIAM

17 September 2014

1    Background
In Malaysia, the sum Insured for a basic fire policy is calculated based on the cost of rebuilding/reconstructing the building in the event of a total loss to its current state (excluding the cost of land).  This is however subject to the terms and conditions of the Malaysian Fire Tariff.
2     Property under Financing
If the property is under finance, the need to insure the property is one of the requirements under the loan agreement and will be arranged by the Financial Institution (FI) to protect and safeguard its financial interest on the mortgaged property. Consumers are also provided the option to self arrange the fire insurance with the request for all policy documentation to be provided to the FI for records on an annual basis.  It is important, therefore, that the property owner or borrower understands the requirements stated in his/her loan agreement.
 3     What is the appropriate sum to be insured?  What factors should be considered?
PIAM would strongly advise  property owners to discuss with their FI on the appropriate sum to be insured taking into account the current rebuilding/reconstructing costs  of their property (excluding the cost of land) to ensure adequate coverage.
Property owners should be aware that raw materials and labor costs have gone up in recent years and if renovations have been done to the property, the sum insured for the fire insurance coverage may not be adequate as of today.  It is also important to factor in the impact of inflation.  It is PIAM’s recommendation to property owners to obtain a valuation report of their property from an accredited quantity surveyor at least once in every 3 years to establish the rebuilding/reconstructing cost of their property and update the actual sum insured to their FI or insurance company.
4      What happens when the full loan is disbursed?
For all mortgaged property, upon vacant possession, the FI based on the insurance requirement in the loan agreement will determine the sum insured for the fire insurance and arrange for immediate protection by the insurance company to safeguard the interests of both parties. The sum insured is related to the amount of loan taken.  It is a common practice that the cost of the land is excluded.
Upon receipt of the policy document from the insurance company, property owners should review and advise the insurance company of any amendments; including to increase or reduce the sum insured where required.
5       How is the premium collected from the property owners?
For the convenience of all property owners and to enhance operational efficiency the premium due is debited to the loan account after receiving the billing transaction from the insurance company. Consumers are made aware of this transaction with advice to remit payment to their loan account for this premium.
In view of Premium Warranty condition in the standard fire insurance policy which states that the contract is automatically cancelled for non-receipt of premiums within sixty (60) days from the inception date of the policy, this operational process between the FI and the insurance company will ensure continuity/validity in the fire insurance coverage.
Property owners need to understand the fire insurance requirement and its significance on their property; where the main objective for immediate arrangement and continuity of insurance cover is to protect the interest of both property owners and the FI.
6      Need for Consumer Education – what consumers have to do ?
There is a need for consumer education at the national level and raising awareness of property owners on their responsibilities and obligations.  PIAM as a trade association for general insurance companies will drive efforts in this regard. 
On their part consumers have to review the policy insurance document received, to regularly determine the correct amount to be insured for their property and to ensure there is no under-insurance or over-insurance.  In addition they should provide any other amendment/feedback/option to the FI and insurance company; where applicable and also to submit complaints, if any to the parties highlighted in all policy documents.    
FIs must be consistent in allowing the option to property owners to arrange self insurance or/and to determine the correct sum insured based on acceptable facts of valuation or/and open to relevant feedback received. 

Friday, August 15, 2014

保险有三保,"保障","保值","保本"!

保险的本质,就是保障,在最需要的时刻给你一笔急用的现金!
什么时侯需要用到保险,没有办法提前知道。保险费用的支出,是可以控制在可以自已承受范围之内;但未知风险造成的损失,是会有可能超出自已可以承受范围,所以只能是提前买保险做准备,应对未来不时之需。
在每次事故中损失最大的是家庭及家庭成员的未来!
因为走的人已一无所知,但是活着的人还要面对生活的艰辛。 人寿保险是唯一能够保证在未来不可知的日子里,能有一笔确定的金钱相伴终老! 

当意外或者说所担心的事发生后,用保险来转移风险后果,以小换大保证财物安然无忧。保险的功用不仅仅体现在意外发生和得大病时能变现大额的资金揽狂澜于既倒,保险更可以合法免税传承财富。

你可知道,保险还可用来避债。 保险为你拿走了担忧,更能让你得偿心愿。利用保险的专款专用,可以补充养老储备,使老有所养安享晚年;也可为孩子存上一笔教育金,保障孩子有良好的教育品质,使下一代生活得更好。保险是一个家庭经济基础的保证。

保险就是用一定的经济支付换取风险的转移和获得经济补偿。保险是人类经济生命的延伸。 

银行资金靠借贷产生利差增值;保险资金靠投资产生投资增值。 银行资金是一种短期资金,存期都在五年以下,普遍为一年;保险资金是一种长期资金,存期至少五年以上,甚至一辈子。

资金是有时间价值的,一般说来存期越长产生的收益越高。 

  1. 五年之内要用钱放在银行账户,主要解决当前问题,不计较投资收益。
  2. 五年之内不用的中长期资金,作为一种长期储蓄存在保险公司,追求高于银行存款的收益。 
银行存款实际上是债的一种,以存款金额为计息单位,给付的是所存本金的利息。保险红利则以股份收益为准,所得红利来自投资机构的净收益分配,回报水平随经营收益的高低而同涨同落。 投资收益的红利是以你本金的多少来算的。所得红利若不支取,则视同本金。随着分配的红利增多,本金也就越厚实,因为红利就是我们的本金,所以再次分配时能够得到的利益也就更大更多了,刚刚说到的就是复利。也就是大家俗称的“利滚利”。此为保险收益和银行收益的区别所在。 
因为保险红利的分配是按资金收益来算,投资收益越高则分配给客户的红利就越多,反之就少。但是,假设若保险机构的投资失败而亏损的话,法律明文规定是要绝对保证返还客户本金的。

保险本金绝对安全的金融属性,是保险和炒股的最根本区别。 言及此就不得不谈谈保险责任准备金 保险责任准备金,是指保险公司为了承担未到期责任和处理未决赔款而从保险费收入中提存的一种资金准备。保险责任准备金不是保险公司的营业收入,而是保险公司的负债,因此保险公司应有与保险责任准备金等值的资产作为后盾,随时准备履行其保险责任。
保险责任准备金实质上是一种或有负债。 责任准备金分为:未到期责任准备金、未决赔款准备金和保险保障基金。 我国保险责任准备金因险种的性质不同而不同,通常分为寿险责任准备金和非寿险责任准备金两类。 

现今的投资与理财的运用方法,唯今只有保险有能力帮你做到:拿走担忧、实现心愿

什么是保险?

以前说有毛病的才买,
    现在知道有毛病买不了。

以前以为自己不会出事,
    现在知道不怕自己出事,这就叫人生的规划。

以前觉得医院是救人的,
    现在才知道医院是认钱不认人的。

以前以为保险是负担,
    现在才知道,保险是第二次生命。

以前觉得到时候再说,
    现在才知道,到时候什么都说不了。

以前觉得买保险的钱,钱就被保险公司赚了,
    现在才知道买的保险,是让保险公司为我赚钱。

以前觉得自己小心点就行,
    现在才知道那叫做侥幸。

保险虽然不能改变现在,但可以预防将来被改变!

买意外险,只为行程路上一份安心;
买医疗险,只为住院不用花自己的钱;
买教育险,只为能给孩子确定的未来;
买养老险,只为在夕阳下无忧的笑脸;
买财富传承险:只为名下资产合理避税。

Sunday, August 10, 2014

KLCI going down tomorrow?

It is good to know some history, that KLCI suffered its biggest daily drop of 21.5% on Sept 8, 1998.

It was Worst than 1987... Will it repeat? ‪



#‎KLSE‬ ‪#‎Bursa‬

Saturday, August 9, 2014

升息时代再碰上消费税 GST

What do you think? Will property price increase further or will it crash?

Don't forget, possibly another round of increase in OPR this year, another two BNM committee meetings in September 2014 and November 2014.



*********************************************************


(吉隆坡7日讯)升息时代再碰上消费税(GST),发展商将面对自1998年经济衰退以来,最严重的产业销量暴跌,收益能力面临重大考验。
彭博社报道,国家产业资讯中心数据显示,去年产业交易年跌11%,是自1998年大挫32%以来的最大跌幅。
同时,房屋价格指数今年首季仅涨8%,写下自2010年第三季以来的最慢增速。
更甚的是,今年首季发展商推介的新单位仅6339个,较前一季度缩水近半,当中也只有30%成功售出!
如今,国行从去年开始收紧借贷条例,市场认为,今年还会再有一轮打房措施,再加上7月时的升息压力,已大大冲击买气和发展商推介新房产的能力。
或慢销一年
当消费税在明年4月开跑时,产业销量跌幅势必受到冲击再度扩大,或许再重演1998年来的颓势。
苦苦挣扎于高成本的产业发展商,已做好准备接受盈利缩水的最坏打算,实达集团(SPSETIA,8664,主板产业股)今年6月已表明,消费税将导致明年第二季盈利下跌。
UEM阳光(UEMS,5148,主板产业股)执行董事依沙丁接受彭博社电邮专访时也点出,消费税将推高建筑原料价格,但一些成本无法转嫁出去,将影响赚幅下滑。
“销量衰退可能延续一年,目前公司正重新审视一些项目。”
双威(SUNWAY,5211,主板产业股)受访时也预测,消费税的部分成本无法转嫁到买家身上,最坏情况赚幅将受3%冲击。
买家赶消费税前进场
UEM阳光执行董事依沙丁表示,并非所有成本都可转嫁到消费者身上,像是住宅产业豁免消费税,发展商无法索回进项税(InputTax)的成本。
因此,大部分承包商和供应商在竞标项目时,已经考虑到消费税可能提高的成本幅度。
转向中国狮城
在消费税落实前,相信买家会赶着进场,短期产业销量可能会上扬,但在新税制开跑后,销售将再次放缓。
他指出,产业市场有本身的周期,UEM阳光会力求灵活,并灌输所有员工新意识,将成本保持在低水平。
产业指数年内恐跌12%
市场预期,大马产业指数在未来12个月将会下滑12%,反而吉隆坡综合指数可再升5%。
管理10亿令吉资金的Fortress资本总执行长杨汤姆斯(译音)指出,由于对大马产业展望不佳,因此已脱售部分股票,转而投资在中国和新加坡。
大马产业指数今年至今已涨16.5%,今日闭市报1507.57点。

How much it cost for a Basic Will?

Will the cost of writing a Will the main reason deter most people from writing it?

Let's see if it is really that expensive. MSolutions Advisory tables the packages for Basic Will with various add-on services.


Friday, August 8, 2014

Nomination - EPF vs. Insurance

Are you confused between EPF nomination, Will, Insurance nomination?

Even Will cannot revoke EPF nomination as well as Insurance nomination, however, a Will can complement EPF nomination.

Click here to find out more.

Don't Let the Cost of a Will Put You Off!


Why make a will? The main reason is that it allows you to choose where you leave your assets, you can pick and choose who deserves the benefit of your legacy; it can avoid inheritance tax; and it is possible to appoint guardians, if so desirable for your children whom you trust to look after them (obviously you should obtain their consent!) it is also possible to appoint people to hold your property on trust for your children (or indeed other individuals) until they fulfil conditions stipulated in the will, for example turning 18.

Consequentially they are potentially one of the most important documents you will ever create during your lifetime. After all they decide just where your legacy goes. Although many put off making a will for many reasons the stark reality is, that although death is something most of us wish not to consider, it is a sad inevitability which needs consideration. Wills can now be made very cheaply and so this should not put you off. Some of the most pertinent reasons for making a will, and the options for producing them cheaply are considered in this article.

The benefits above are clear so why not make one? And why do so many people not? There are a few common reasons people use in justifying not making a will, most of which have little justification, especially when compared to the positives of making one/ the negatives of not. Many argue it is too morbid and do not want to consider their death. However it is a sad inevitability of life and giving consideration to the practicalities of a will can itself ensure your life has a more lasting effect on your loved ones. Some say 'I'm too young to make a will' however if you're old enough to vote and drink surely you are old enough to make a will - particularly if you have assets/people to protect. (Death and taxes are certain in life)

Others argue that it takes too much time - true you may have to contemplate just what provisions you should be making which could take time to consider but the actual process of making a will is, today very straightforward and stress free. Then you have those who claim it is too expensive. This is a fallacy; the cost of a will is cheap! 

There are three basic methods for producing a will, all of which should be very affordable.

Firstly you can write your own, although this should be done with great care. Mistakes can go horribly wrong and consequentially the, relatively small, additional expense of producing the will professionally should be considered. 
Secondly you can go to a solicitor, which can cost as little as £100 including will storage.  (not sure in Malaysia will the solicitor includes Will Custody service)
Thirdly you can go to a Will Writer who is not a qualified lawyer, but will charge (usually less than a lawyer) for producing the document but are professionals often with considerable prior experience in will writing. (Rockwills is the most well known in Malaysia)

With the above considered and the control and peace of mind afforded by producing a will what are you waiting for? If you are in a position where you have people to provide for, or you wish your legacy to go to others than would if dying intestate then you should make a will. 

This can now be done quickly, cheaply and with very little hassle.

Thursday, August 7, 2014

BFM Podcast - What is Financial Planning?






Linnet Lee, Chief Executive Officer, FPAM

It can safely be said that despite the crucial importance of it, awareness of financial planning is still low in Malaysia. We explore FPAM's value proposition to the wider population. The widespread conflict that exists in commission-based financial products distribution is one of the many areas of concern. 

We also find out how FPAM incorporates financial planning goals within existing regulatory investment bodies.




Tuesday, August 5, 2014

Motor Insurance - What is Agreed Value?

Many insurers settle a total loss based on the actual cash value at the time of loss. This could result in a significant financial loss due to depreciation. At , most of the vehicles are protected on an agreed value basis, regardless of market depreciation.


Agreed value is the value that is agreed upon between an Insured and the Insurer at the beginning of a period of cover, which does not change throughout the period of cover. As almost all cars depreciate with age and use, it is important to get your car insured at an agreed value with us.

Click here to renew car insurance with us.

Wednesday, July 23, 2014

Count Down to GST 2015

Only 8 months and 8 days to go... Are You Ready?

Those business owners expecting it to be postponed might have to be disappointed.

Tuesday, April 29, 2014

GST & Life Insurance

According to the latest Guidelines, Life Insurance Premium, even purchased by Company, is exempted from GST.

If it is certain, then it is a good news for life insurance agent to sell to their client using Company fund as Key-Man Insurance etc which current subject to 6% service tax.

A RM10 million Life Insurance Policy

After MH370, many people will realise life is uncertain.
After Karpal Singh's accident, probably even more people will realise the same.

In my word: Tomorrow is not a guarantee, for some people.

Some customers sort of complaint that I don't sell them the 'insurance' plan. My answer always, almost the same: "you like me keep pushing you to buy?" or "I am not working hard".

To get insurer to underwrite a Life Insurance Policy of RM10 million is not easy. I'm working hard on this case, where I usually don't work hard on selling. Not only they want to look at your health, i.e. insurable condition, they also want to ascertain no money laundering as well as whether do-you-worth-so-much.

All the best for me, that my customer gets want he wants (high coverage for the Insurance Trust) and I am rewarded for working hard, which might motivate me to work even harder, to help more people get what they want.

Let me close this post with a quote from Zig Ziglar (1926 ~ 2012)

You will get all you want in life if you help enough other people get what they want

Wednesday, April 23, 2014

Trust Fund - Protect your loves one and protect the insurance proceeds

This article published way back in May 2008, however it is still very much relevant today and for next decades to come.

In summary, example of the benefits of an Insurance Trust are
1) Control your beneficiaries spending habits
2) Determine the amount to be paid to your beneficiaries on a periodical basis
3) Set up conditions on how the fund are utilised
4) Reduce the amount or stop payment when the beneficiaries mature
5) Determine when your beneficiaries will receive their full entitlement.

The article also highlight the benefits of using corporate trustee than individual trustee.

Individual trustee is a human, may be dead, fall ill, incapacitated, become of unsound mind, or even become bankrupt, not to mention potentially not doing the job or payment according to your wish. Why take the risk?

Click here to download (1.02mb in PDF format)

Wednesday, February 5, 2014

Why Banks Reject My Loan?

Banks do not always inform you of the reasons behind the rejection of your loan application.  (may be due to BAFIA)

You may have charted out a rudimentary business plan and fulfilled all the basic economic, financial and social requirements but the bank still sees something lacking. Stop losing sleep over why your loan application gets rejected, contact us.

Monday, February 3, 2014

Motor Insurance 101 - Know the exclusions!

 A standard motor insurance policy does not cover:
 
  
 
  • Your own death or bodily injury;
  • Your liability against claims from your passengers;
  • Theft of non-factory fitted vehicle accessories (car stereos, leather seats, sports rims etc) unless otherwise declared.
  • Consequential loss, depreciation, wear and tear, mechanical or technical breakdown failures or breakages; and
  • Loss/damage arising from an act of nature, e.g. flood, landslide, storm.

Luckily, for additional premium, some of these exclusions may be covered.

Example:-
  1. Windscreen (Endorsement 89)
  2. Legal Liability For Passengers
  3. Special Peril (Endorsement 57)
  4. Vehicle Accessories (Endorsement 97) 
Since your own bodily injury is not covered, don't forget to buy Personal Accident for yourself.

Motor Insurance 101 - What is ISM-ABI?

Have you wonder why the insurance agent asking you to insure your car more than the price you pay for it?

It is always no problem when nothing happens but when claim arises, consumers always complaint they were cheated or underpaid.

Let's look at the news published in November 2009.

Insurers to adopt new vehicle valuation system
7 November 2009, By Business Times
Insures and takaful operators have agreed to incorporate into their motor insurance policy a reference point to determine the market value of vehicles. Last month, both Bank Negara Malaysia and the General Insurance Association of Malaysia (Piam) endorsed Insurance Services Malaysia's Automotive Business Intelligence system (ISM-ABI). The ISM-ABI is the only approved system for vehicle valuation among financial services companies in Malaysia.

"The introduction of the new system for motor insurance is in line with practices in other developed markets," said ISM chief executive officer Carl Rajendram in Petaling Jaya yesterday. Rajendram said that most major motor insurers and takaful operators are in the process of adopting the new and more transparent system for motor insurance starting 2010. "It is part of the modernisation of Malaysia's motor insurance and takaful cover announced recently and will ultimately benefit the consumers, insurance and takaful companies," Rajendram said. "The entire automotive industry is moving towards greater competitiveness and efficiency and we are confident that the ISM-ABI will play a pivotal role in driving this objective among all stakeholders," he explained. With the new service from ISM, insurance and takaful companies now have the ability to generate renewal notices with the current year sum insured with the corresponding premium to be paid. "The services increase transparency in the whole motor insurance process not only for purchasing insurance but also during claims," Rajendram said.

With the new system from ISM, insurers and takaful operators may also choose to pre-determine the compensation upon theft and total loss claims by referencing the database. "Consumers are also able to verify the vehicle's market value themselves from the website and access the same information that insurers are accessing," he said. The new service will reduce uncertainty when insuring a vehicle and reduce dissatisfaction that consumers experience when making a claim.

Travel insurance saved my mum ~ True Story

29 September 2010, By The Star

        RECENTLY, on a trip to China with my 81 year-old mother and some friends, we met with an accident. My mom and I were knocked down by a car. My mom suffered head injuries when she fell and hit her head on the pavement. We took her to the hospital where it was determined that she was bleeding in her brain and would be in no condition to travel. Beside difficulties in communicating with the locals as their dialect was different from the Mandarin that we used in Malaysia, I also found out that it was going to cost a lot of money to treat my mother.
Furthermore, the Chinese hospital would only accept yuan. Since I did not have much yuan with me, I was quite desperate. Then I remembered the travel insurance I bought for the trip and called the emergency number given. After confirming everything was in order, the customer service staff arranged for doctors from Malaysia and Beijing to liaise with the attending doctors at the hospital and to advise and keep me informed. I was asked by the company’s doctors whether I wanted to bring my mother home to Malaysia. I told them that I did not see how it was possible due to my mother’s condition. They assured me that they would make the arrangement and a plane would be sent over to pick us up. The plane duly arrived as promised. I was surprised that the plane had ICU facilities with a doctor and nurse on board.
On arrival in Kuala Lumpur, there was an ambulance waiting to take us to the hospital requested by me earlier. I was really amazed that for the small premium that I paid, we were given such VVIP treatment. As a businesswoman, I was impressed by the professional manner of their staff in looking after us. With more Malaysians now travelling, they should not neglect buying travel insurance from the right company, especially when traveling overseas. They should also know what insurance coverage they are getting. I would like to thank all the staff who looked after us in China and Malaysia, especially Dr Alan, Dr Teoh, Dr Grey, Ms Sharmini and Ms Lisa. YVONNE YUE, Kuala Lumpur.

Motor Insurance 101 - Why premium going up soon?

According to PIAM website, current motor insurance tariff has not changed since 1978, wow, that is about 36 years already...

Therefore, beside Petrol, Sugar, Electric Tariff, Food, motor insurance tariff will be increased soon by way of de-tariffication, because currently it is a loss making business for most insurers.

Key factors affecting the deteriorating results of the motor insurance sector are:-
  1. Inflation of spare parts prices, repair costs, legal fees, adjustors' fees, cost of claims administration, etc.
  2. Escalating court awards e.g. the highest court award was for RM9.8million.
  3. Vehicle thefts - the total number of stolen vehicles has increased significantly from 8,869 cases in 1997 to 40,284 cases in 2009 i.e. up 4.5 times over 13 years whilst the quantum of claims escalated from RM135million to RM606million in 2009, up 4.5 times in the same 13-year period.
  4. Fraudulent claims. These are fabricated or inflated claims perpetrated by syndicates or various parties to insurance claims or even ordinary law-abiding citizens who take opportunity to defraud insurers. Based on a study, bogus and inflated insurance claims cost the UK insurance industry over £1.6 billion a year and this would have added 5% to every policyholder's premium. When translated to the local scenario, the same 5% for insurance fraud will cost an additional RM650 million in premium payments by policyholders in Malaysia.
  5. Risk Based Capital Framework requires that each insurer maintain a capital adequacy level that commensurate with their risk profiles and was implemented from Jan 2009. Insurers are generally required to provide for additional capital or risk charges for their business risks. Inadequacies in premium ratings must be supported by higher capital requirements and this is the scenario that many motor underwriters are experiencing in the light of the deteriorating motor insurance results.

Motor Insurance 101 - What is Special Peril?

Usually, car owners want to keep the premium as low as possible. Therefore, they tend to ignore the benefit (additional coverage) which requires 'additional premium'.

Special Peril is one of the additional coverage most car owner do not aware (yet).... basically it covers the act of nature, e.g. floods, typhoons, tsunamis, hurricanes, storms, volcanic eruptions, earthquakes, landslides, landslips, subsidences or sinkholes, earth or other convulsions of nature.

In 2012, statistic from PIAM showed only 0.4% of the motor policy took on the Special Peril cover.

Many car owners only aware that their have to bear the loss when car damaged by flood or storm, which can be a big hit to their financial, just like what has happened recently in East Coast in year 2013.

How much is the 'additional premium'?

It costs 0.5% of the Sum Assured. If your car's market value is RM40,000 then the premium (NCD not applicable) is RM200 only.




Thursday, January 23, 2014

Traveling? Why you should buy Travel Insurance!!

Why you may serious to consider buying travel insurance...

Here are some simple example shows us why...
1) Accident happens every where anytime.... it is very costly to travel 'back' when you are in trouble. Medical evacuation costs a bomb.
2) You have paid for the trip but something happens.... sorry, no refund.
OR
3) Flight delayed.....
4) Luggage lost/misplaced....
 
Click here for Brochure from AIG, a leading international insurance company.

Contact us now, to effect the coverage is fast and easy.



How much I need to pay?


Legend:
R1 denotes Region 1
R2 denotes Region 2
R3 denotes Region 3



Monday, January 20, 2014

SME Business Loan - Common reasons of rejection

Capital or Loan is essential to running a business...... just like blood for body. Having profit for business is good but having profit as well as strong cashflow is vital. Some business have profit but no cashflow, thus facing serious problem to expand business further or paying suppliers.

Many SME complaints not easy to get loan for business expansion or working capital. Anyhow, the main reasons given including:-

1) Credibility - Bank will look at your Credit Report. Have you? Your credit report just like a Character Report, judging your character in term of repayment. Are you a good paymaster or a bad paymaster?

2) Capacity - Bank will want to know can you expand your business with their money.

3) Competency - Bank will want to know how good are you in your business.

4) Commitment - How commit you are? You can't be a RM2 company and asking bank to lend you RM200,000.

5) Communication - Will you able to communicate to the right person and right time? Talk to wrong bank or wrong banker will kill your chance to get a good loan.

There are more reasons banker will reject or reduce loan limit or impose higher interest as part of their Risk Management Policy. Remember, they are just employees to ensure their company make profit.

Unless you are big client for banks, where they offer you loan even when you don't need it, else, if you need bank loan, better talk to the expert, D-I-Y can be sometime very expensive because if you spoil the best chance you have, you might facing serious liquidity problem.




Sunday, January 19, 2014

Fire Insurance - Construction Class

For Fire Insurance, building are classified into four classes by construction type.
 a. Class 1A Construction
 b. Class 1B Construction
 c. Class 2 Construction
 d. Class 3 Construction


 Class 1A Construction 
 1. Walls
 External walls up to the eaves level (excluding windows and doors) to be :
 a. brickwork, masonry, concrete, reinforced concrete, autoclaved aerated concrete, hollow blocks, solid blocks and/or slabs not less than 100mm (4 in) thick and/or 2 hours fire resistance and/or
 b. any other materials having at least the same fire resistance of any one of the materials cited in 1 (a) above as certified by an AUTHORIZED Body.

 2. Floors
  To be constructed of reinforced concrete.

 3. Roofs
 The external covering to be entirely of non-combustible materials.

Class 1B Construction 
 1. Walls
 External walls up to the eaves level (excluding windows and doors) to be :
 a. brickwork, masonry, concrete, reinforced concrete, autoclaved aerated concrete, hollow blocks, solid blocks and/or slabs not less than 100mm (4 in) thick and/or 2 hours fire resistance and party of non-combustible materials.
  b. wholly of mixed materials such as cement-wood, cement board or any other materials having at least the same fire resistance as certified by an AUTHORIZED Body or classified in the Building Bye-Laws and plastered with cement or having cement finishing.
 
 2. Roofs

 The external covering to be entirely of non-combustible materials.

Class 2 Construction 
  1. Walls 
 External walls: 
 
 a. partly of brick, masonry, concrete, reinforced concrete, autoclaved aerated concrete, hollow blocks, solid blocks, slabs or any other materials having at least the same fire resistance as certified by an AUTHORIZED body or classified in the Building By-Laws and partly of wood or other combustible materials. 
  
 Note : To conform with this construction classification, the usage of wood or other combustible materials must not  exceed 50% of the total wall area. 
  b. of asbestos sheeting, corrugated iron, galvanized iron or other non-combustible materials. 
 
 2. Open-sided 
  a. open-sided sheds with non-combustible columns 
 b. Open-sided sheds with wall (s) constructed of non-combustible materials and with non-combustible columns. 
 
 3. Roofs 
 The external covering to be entirely of non-combustible materials. 
 
 Class 3 Construction 
 
 All other construction not conforming with Class 1A, Class 1B and Class 2 Construction 


Wednesday, January 8, 2014

Income Tax 2013. Get RM2,000 tax relief ....

Tax relief of RM2,000 if given for Year of Assessment 2013 only for
- Resident of Malaysia
- Aggregate Income less than RM96,000 for year 2013.

How much Tax Saving?
Depends on your tax bracket, up to 24% x RM2,000  = RM480

What is Aggregate Income?
Generally, Business Income + Employment Income + Dividend (taxable) + Rental Income = Aggregate Income.

Click HERE for the Exemption Order.

GST - Guide On Retailing

What is GST?
How does GST affect my business (retailing)?

Do you care? You should....
It is coming..... 1.4.2015

Click HERE for the Guide On Retailing (Business)


Saturday, January 4, 2014

遗嘱 DIY?

自己动手做-DIY?
这样啊,那撰写遗嘱是无法避免的了,就用网上或市面上的模版(Template)来自己制作(DIY)总可以吧,又可以省钱。的确,“自己动手做”是不用钱,但是,这也直接源生了另外两种问题-
(一)标准版的遗嘱模版无法处理特别要求
(二)忽略合法遗嘱法律条款的要求,进而导致遗嘱变成无效或引起更多疑惑(导致遗嘱被挑战于法庭)。单一或标准模版的遗嘱(Standard Will Template)不见得会符合每个人不同的家庭背景,个人意愿,以及当地法律的严格要求,也无法有效的去处理特别的状况和需要(Special Request)比如太太不想留遗产给丈夫或需要设立信托来管理未成人孩子的资产等等。

还有,没有被分配到遗产的 配偶或子女有权去向法庭要求得到该有的份额,这都会挑起漫长的法律诉讼,费时有费钱。不懂大马遗嘱法令的人,可能会忽略一份合法遗嘱的基本要求,让该遗嘱变成无效,和没有遗嘱的人没有两样,这不得不谨慎小心。我们该认真和谨慎的去写一份符合自己意愿和法律要求的唯一遗嘱。