Friday, 28 March 2014

Almost all Malaysians on MH370 had life insurance – Bernama

The Life Insurance Association of Malaysia (LIAM) said that 47 of the 50 Malaysians on board Flight MH370 had insurance policies.

The figure comprised 38 passengers and 12 crew members, and their life insurance policies were with 14 companies in Malaysia.

LIAM President Vincent Kwo said about six non-Malaysians are also insured with its member companies.

"Family members or next-of-kin of policyholders can contact LIAM at 03-26916628 or email liaminfo@liam.org.my, if they wish to find out which insurance company their loved ones were insured with," he said in a statement today.

Meanwhile, in a separate statement, AIA Bhd said it would get in touch with the families of its policyholders on the flight.

"We assure the families that we will get in touch with them to expedite the processing of the life insurance claims within the next 24 hours.

"The affected family members can also contact 1300-88-8860/70 for further assistance or email members@aia.com," said Chief Executive Officer Bill  Isle.

Flight MH370 went missing en route to Beijing from Kuala Lumpur. It was disclosed yesterday that the flight with 239 on board had plunged into the Southern Indian Ocean with no survivors. – Bernama, March 25, 2014.


Friday, 21 March 2014

Why Takaful Is Needed in Islamic Finance

By Dr. Faleel Jamaldeen from Islamic Finance For Dummies


Takaful is a new spectrum of insurance products that has emerged in recent decades. These products are based on principles, features, and structures that set them apart from conventional insurance.

Before takaful appeared on the market, many people in the Muslim community believed that trying to reduce risk went against Islam. Their perception was that because every worldly action comes from Allah’s will, people shouldn’t try to reduce or avoid the results of those actions.

Although Islam does prohibit attempting to avoid risk altogether, it doesn’t prohibit reducing risk.

The elements of uncertainty (gharar), gambling (maysir), and interest (riba) make conventional insurance products prohibited risk-sharing instruments for Muslims.

Uncertainty (gharar)

Conventional insurance is a contract between the insurer and the insured, but this contract doesn’t explicitly describe its outcome for either the insurer or the insured. And sharia doesn’t allow the sale of contracts that are based on uncertainty.

The conventional insurer has the assurance of receiving a premium each month but faces uncertainty regarding when and whether the insured will make a claim. Likewise, the insured may or may not incur losses or damages to prompt a claim.

In addition, when an insurance claim does occur, neither party knows in advance how much may be paid to the insured (or even whether the insurer will pay a cent). The insurer considers many variables when documenting an insurance claim, so predicting what the outcome may be for either party is impossible.

The bottom line: Islamic scholars agree that conventional insurance contracts are based on uncertainty, which means they aren’t sharia-compliant.

Gambling with premiums (maysir)

Going hand-in-hand with uncertainty is the fact that conventional insurance has characteristics of gambling. The conventional insurer receives huge amounts of money from the insured in the form of premium payments.

Will the insurer be able to hold onto that money? Or will some sort of disaster strike (tornado, wildfire, flood . . . pick a weather event) that results in the insurer paying out every dime of the premiums and then some?

When few claims are filed, the insurer wins (and the insured lose their premiums). When loads of claims are filed, the insured get some payback for their premiums (and the insurer may be in trouble).

Most Islamic scholars generally agree that conventional insurance products involve gambling and aren’t sharia-compliant.

Collecting interest (riba)

Another reason that Islamic law prohibits conventional insurance products is that their transactions involve interest. Interest generally comes into play in two ways:

  • Insurance companies need to make sure they can pay their customers’ potential future claims, so they rarely let the premiums they collect sit in a cash account. Instead, they invest the premiums in interest-bearing fixed income instruments such as conventional bonds.

  • If the insured files a substantial claim, she may receive an amount from the insurer that totals more than the premiums she has paid. Most Islamic scholars consider any excess amount paid by a conventional insurer to be interest.

  • Keep in mind that someone who purchases a takaful product can also receive an amount that exceeds the total contributions she pays in. In that case, the excess amount is not considered interest.

    The difference is not just semantics; the difference lies in the structure of a takaful fund and the transfer of risk (which is quite distinct from a conventional insurance product).


    http://www.dummies.com/how-to/content/why-takaful-is-needed-in-islamic-finance.html



MH370: Insurers of flight MH370 brace for payout

KUALA LUMPUR: The consortium of insurers of Malaysia Airlines Flight 370 led by Allianz are bracing themselves for a huge payout in respect of insurance claims connected to Malaysia Airlines flight MH370 from KL to Beijing which has been missing since March 8.

The biggest aviation compensation claims ever made were related to the 9/11 attacks in the United States, with an average payout of US$2.13 million per passenger.

Previously, one of the largest insurance payouts for an  aviation claim was for the American Airlines flight which crashed in Queens, New York in 2001 killing all 265 passenger and crew. Insurers paid a total of US$600 million for the insurance claim involving the crash.

“The loss of Malaysia Airlines Flight MH370 will likely mean big payouts from several insurance companies this year,” said an aviation analyst at a local stockbroking firm.

Insurers’ making up any consortium for this purpose would normally not disclose the amount of insurance taken because it could lead to costly litigation.

"Usually, the insurers and the airline company will not disclose the underwriting value, given the concerns over an extremely high claim from lawyers," said Hao Yansu, dean of the School of Insurance at the Central University of Finance and Economics who was quoted by China Daily.

Allianz confirmed on March 11, that it was the main provider of insurance for the aircraft itself, as well as the liabilities attached to the passengers and cargo.

However, the company declined to comment on the extent of its exposure or identify other insurers with exposure.

The insured value of the aircraft could amount to around $100 million, while the liabilities and compensation typically amount to a far higher amount, Reuters reported.

"The compensation will dent the financial performance of insurers. But such claims are rare events, thus have a limited impact on them in the long run," Hao said.

As both Malaysia and China are the contracting countries, the missing airplane is covered by the Convention for the Unification of Certain Rules for International Carriage by Air.

Malaysia became a signatory for the Montreal Convention which governs ticketed international travel in 2008. China signed in 2005.

The claim for the loss of the aircraft could also be huge. The current listed price of a Boeing 777-200ER is US$361.5 million, according to the Boeing Co website.

Further compensation from Malaysia Airlines depends on the reason for the accident. If it is established that the disaster resulted from a mistake by the airline, the compensation could be huge.

There were 154 Chinese passengers on board the missing flight  and  most of the Chinese passengers on the plane had purchased accident or life insurance policies, according to major Chinese insurers.

Ping An Insurance has the hardest passenger exposure, with at least 38 names on the aircraft manifest carrying the company's insurance policies, and possibly 15 more. China Life has confirmed having insured 30. Neither company has commented on the potential compensation amount involved.

China Pacific Life Insurance has confirmed 16 clients on the plane, with total compensation at about 5.44 million yuan .

"If it turns out to be a terrorist attack, some travel insurance policies may not apply. But the families of those who purchased life or accident policies would get compensation under any circumstances," Hao said.

Meanwhile Malaysia Airlines said it has sufficient insurance coverage to cover any legal liability arising from Flight 370.

In an email interview, MAS revealed that it had placed its insurance with a consortium of established and reputable insurers in the international aviation insurance market. This includes Lloyds syndicates and globally renowned insurance companies.

Further, MAS said it had enough insurance coverage to meet any eventual claims that may arise.

It has already been making early payments to the families of the passengers waiting for news of the search.

These payments however are entirely borne by MAS and is not part of any compensation that may be payable.


Saturday, 9 November 2013

Health Enrich



Health Enrich adalah satu pelan rider perubatan melalui sumbangan berkala yang membayar balik perbelanjaan perubatan utama sekiranya anda dimasukkan ke hospital, menjalani pembedahan atau menerima rawatan sebagai pesakit luar.

Pelan ini mempunyai empat pelan – HealthEnrich Vital, HealthEnrich Select, HealthEnrich Advanced dan HealthEnrich Premier yang menyediakan kad perubatan individu untuk memberikan anda akses serta-merta di salah satu panel hospital kami.



Siapa yang layak memohon?



Pelan Pilihan

Health Enrich adalah pelan kad perubatan yang terbaru dari PruBSN di mana terdapat beberapa perbezaan dari pelan sebelum ini iaitu Takaful Health 2.

Antara beberapa perbezaannya yang menjadikan ia lebih menarik dan menguntungkan adalah:

1) Jumlah had seumur hidup untuk penggunaan kad perubatan Health Enrich dari serendah RM300,000 sehingga RM4,000,000.

2) Bilik dan Penginapan Hospital Harian sehingga RM1,000 dengan jumlah maksimum tahunan 365 hari.


3) Pengecualian deposit hospital untuk hospital-hospital pilihan


4) Khidmat Nasihat Perubatan Kedua sehingga RM1,000 (tahunan)



5) Dana pemindahan organ dengan had seumur hidup sehingga RM200,000


6) Perlindungan dari komplikasi-komplikasi kehamilan sehingga RM20,000 tahunan (untuk wanita)


7) Bantuan kecemasan di seluruh dunia (bukan hanya di dalam Malaysia, tetapi di seluruh dunia)


8) Pilihan pelan kad perubatan untuk anak sama ada 10% ko-takaful atau 100% tanggungan oleh PruBSN (sebelum ini hanya ko-takaful)


Untuk keterangan lanjut, sila hubungi 0126673031 atau email: nonie.resources@gmail.com


Saturday, 8 June 2013

FAQs on Investment-linked Insurance


 1. Is the return on an investment-linked fund guaranteed?

No, the return on an investment-linked fund is not guaranteed. This is because the price of the units that you hold may rise or fall depending on the market value of the investment.


2. What are bid and offer prices?


The offer price is the price quoted by the insurance company when selling the units of an investment-linked fund to you. The bid price is the price quoted when the company buys back the units from you. The difference between bid and offer prices is called the bid/offer spread, which is usually expressed as a percentage. The spread is usually about 5%.


3. Would I know the charges I pay under my investment-linked insurance plan?

An investment-linked insurance plan is usually more transparent than other plans in disclosing the charges that are levied. Theses charges, including insurance charges, administration costs and fund management fees, are disclosed in the statement sent to all policyholders.


4. Do I have to surrender my investment-linked insurance plan if I decide to change the investment fund?


No, it is not advisable to surrender your existing insurance plan if you decide to change the investment fund. This is because you may get less than what you have invested due to fees and charges.


What you can do is to switch funds and most insurance companies allow one switch per year without any fee. However, for additional switches, you may be charged a processing fee.


5. Can I increase my investment?


Yes, you are allowed to top up on your exising investment-linked insurance plan at any time. The 'top-ups' are normally used to enhance the investment portion of both single and regular-premium plans without any change in the insurance coverage. You can also increase the coverage for death, critical illness, hospitalisation, accident and others.


6. How long should I hold my investment-linked insurance plan?


There is no fixed period of time for you to hold on to your investment-linked insurance plan. It is like a savings account in a bank or a unit trust in which you may decide on the duration of holding onto your plan. However, it is not advisable to hold the plan for a short period of time in view of the high initial costs. 

http://www.insuranceinfo.com.my/help_and_advice/faq_investment_insurance.php?

Saturday, 1 June 2013

Thanks a lot, Angelina Jolie - Hollywood star’s bravery in confronting challenges is inspiring

Sunday Star, June 2, 2013

REFLECT BY SUMIKO TAN

DO you have a history of fibroids?” she asked. My heart froze and my head raced.

I was on a bed in a darkened room in a hospital in Novena doing my annual medical examination last month. A pelvic ultrasound wasn’t part of the package, but when the doctor asked if I wanted to do it, I said okay.

I’d done it several times before and it’s painless. A gel is spread over your lower belly and the radiographer uses a hand-held device to scan your abdomen.

Did I have fibroids? I tried to remember and told her that, yes, I think one of the previous tests showed I did.

The pelvic ultrasound was the last hurdle I had to cross that morning. The radiographer had earlier done a breast ultrasound that seemed to pass uneventfully. I was hoping this would be over quickly too.

It wasn’t to be.

She said my bladder wasn’t full and so the examination would take a while. Even then, it seemed to be taking forever. She kept going back to one particular spot at my lower belly.

She asked if I had children and I said no. She continued her probe.

“There’s something wrong there, isn’t there?” I asked her, worried.

She didn’t answer.

I felt a shiver run through me.

I knew I was putting her in a difficult position but I had to know.

“Is it my ovary?” I insisted fearfully. “It is my ovary, isn’t it?”

She gave a little nod, and I freaked out.

She asked if I’d done a pelvic ultrasound before and I said I had. She went outside, I presumed to check my records.

My heart was pounding by then.

She returned soon after, did one final check of that particular area then said I could get changed.

I wasn’t trembling exactly, but I was extremely worried.

“You found something didn’t you?” I asked again. She said she couldn’t say anything, adding “the doctor will say”. I asked to see the doctor but it was nearly 2pm on a Saturday and they had all left. She said I could check on Monday.

I went back to H, who had finished his examination and was waiting for me.

I think they found something in my ovaries, I told him grimly.

I took out my iPad and started Googling “ovarian cancer”.

My heart sank deeper. Article after article said it was a dangerous form of cancer with a five-year survival rate of 75% if diagnosed before it spreads, and 20% if it has spread to the upper abdomen.

My weekend was miserable.

A little knowledge is a dangerous thing, and in this Internet age, everyone thinks he knows everything after consulting Dr Google.

I got green in the face and sick in the stomach reading up any form of illness I could think of related to the female reproductive system. I also dug out my past ultrasound reports and pored over them.

What’s the point of worrying, H said. You don’t know what’s wrong or if anything is wrong. Don’t dwell.

I can’t stop imagining the worst, I said.

He advised me to call the clinic on Monday to check, but I decided not to, clinging on to the hope that no news would be good news.

Monday passed with me feeling jittery every time my phone rang, as did Tuesday, Wednesday, Thursday and Friday. I tried to relax over the weekend, but on Monday, I started worrying all over again.

My mother had a robust response to my fretting. If they find something, at least you will know about it early, she said. You can then “cut it off”.

On Tuesday night when I came home from work, I saw a thick envelope on the kitchen table. My medical report, as well as H’s, was inside. It was still sealed.

Why didn’t you tell me it’d come, I asked. I didn’t want to worry you, he said.

My fears were not unfounded.

One part of the report was marked in bold and read: “The ultrasound of the pelvis showed a septated right ovarian cyst measuring about 1.7cm. You should have this evaluated by repeat ultrasound in another menstrual phase to follow up.”

The word “septated” sounded scary and sure enough, when I Googled it, the first article I saw warned that such cysts “are more likely to be cancerous than any other cyst”. (“Septated”, I also discovered, means the cyst is divided into segments.)

See, I said to H, I told you so. I was frightened, but I also felt a sense of vindication and relief. At least I knew now, and if anything was wrong, I could get it checked.

I sat down to read the report more carefully. The radiologist had also noted that “no solid component is seen within the cyst” and that it was “probably physiological”. (I took that as good news.) But she recommended another ultrasound “for further evaluation”.

I spent the night Googling “septated ovarian cysts” but was none the wiser.

On Monday, I saw the GP at work. She said I should consult a gynaecologist for his opinion. I made an appointment for later this month.

A week after that little drama, news broke that actress Angelina Jolie had undergone a voluntary double mastectomy because she has a gene that makes her more at risk of ovarian and breast cancer.

She had chosen to go public about it so that other women who could be cancer-prone would get tested and know their options.

It was a revelation that came with some risk of damage to her image because, let’s face it, to most people, especially men, a mastectomy isn’t ranked up there with what is considered sexy and seductive, and she is in the business of being that.

But reading the news, my respect and admiration for her shot up.

Despite being so beautiful, accomplished, rich and famous, she, too, must have faced the sort of fears all other women have about their health. But instead of letting it overpower her, she chose to, in her own words, “be proactive and to minimise the risk as much I could.”

The bit that truly inspired me was when she said “life comes with many challenges. The ones that should not scare us are the ones we can take on and take control of”.

It’s tough being a woman because so many things can go haywire with your body, and when it does, the fear and worry can be overwhelming.

If – and when – I get bad news, I hope I can be as brave as her and confront the problem rather than be cowed by it. — The Sunday Times / Asia News Network

Thursday, 23 May 2013

5 Ways Money Can Buy Happiness

By Philip Moeller | U.S.News & World Report LP – Mon, May 20, 2013

Psychologists have been busy testing the premise that money can't buy happiness. Nobel prize-winning economist Daniel Kahneman has garnered lots of attention with research that says this largely is true. Beyond about $75,000 in annual income - enough to fund a moderately comfortable lifestyle - more money does not make people much happier, he said.

Not so fast, say two young academics. Elizabeth Dunn, an associate professor of psychology at the University of British Columbia, and Michael Norton, an associate professor of marketing at Harvard Business School, have written a new book called "Happy Money: The Science of Smarter Spending." In the book, they make a persuasive case that money does have the ability to buy happiness, and it's not how much money you have that matters, but how you spend it.

Much of the "money can't buy happiness" school of behavioral thought rests on a concept called hedonic adaptation: The human brain rapidly adjusts to what it senses.What's new today becomes ho-hum tomorrow. And so it is with material acquisitions. That shiny new car gives us immense happiness when we drive it off the lot. But we soon get used to it, and it ceases to provide much happiness. Ditto for other possessions.Hedonic adaptation extends to human relationships. The torrid romance gives way to the memorable honeymoon, which is followed by the exciting early years of marriage and then often succeeded by a reality in which even the strongest marriage may become routine to both members of the happy couple.

The path to happiness, Dunn and Norton say in their short and engaging tour of the happiness landscape, is, in effect, an end run around the brain's adaptive power. They cite a wealth of research supporting the notion that we should spend money on a range of things besides material goods and services that the brain can adjust to. They also include solid examples of how people and organizations employ these principles to increase satisfaction and happiness.In a jargon-free and anecdotal guide (hedonic adaptation is my phrase, not one you'll find in their book), the authors say, "Shifting from buying stuff to buying experiences, and from spending on yourself to spending on others, can have a dramatic impact on happiness." They set forth five key principles for what they call "happy money."

1. Buy experiences. The brain doesn't adapt as successfully to experiences. While things may wear out their welcome, experiences can provide increasing benefits over time. A memorable trip takes on even more luster with the passage of time. Even an unpleasant adventure may produce stories that grow in value as the years pass. The happiest experiences usually involve other people we care about, and thus tap into human beings' greatest source of meaning -social interaction.

2. Make it a treat. "Abundance, it turns out, is the enemy of appreciation," the authors write. Using your money for surprises can be a great way to produce happiness and bypass the brain's basket that collects and negates the benefits of the predictable and routine. Better still, it's possible to change the way we make even repeated material purchases and turn them back into the treats they were when you first began buying them. Human brains love surprises. Like other principles on the list, the happiness impact of treats can be amplified if they are produced using multiple principles.

3. Buy time. Having more time is a form of wealth that can be used to "buy" more happiness. So it can make sense to spend money to create both the reality and, of equal importance, the perception of what Dunn and Norton describe as "time affluence." It also turns out that giving away our time, through volunteer work for example, can make us feel even more time-affluent. We have time to spare. It's literally possible to buy more time by spending money on time-saving products and services. But the book also makes a strong pitch for spending less time on two of the least happy uses of time - television and commuting - and spending more time with family and friends.

4. Pay now, consume later. This principle is particularly appealing to me because it turns the basis of our debt-loaded "buy now, pay later" consumption economy on its head. Spending money is, literally, a pain to our brains. That's one major reason credit cards are so alluring; they separate the purchase from the pain.But it turns out that paying in advance for something you will consume in the future does the same thing and turns the actual purchase into something our brains regard as being free. Buying pleasurable things and experiences ahead of time - such as a weekend spa getaway or vacation - also frees our minds to imagine all sorts of wonderful outcomes, and this anticipation can add to our happiness. Finally, it's also true that laying out the money ahead of time is an effective check on overspending. So we can get more happiness and spend less money."Because delaying consumption allows spenders to reap the pleasures of anticipation, without the buzzkill of reality," the authors say, "vacations provide the most happiness before they occur."

5. Invest in others. "Spending money on others provides a bigger happiness boost than spending money on yourself," Dunn and Norton write. They also cite research that this is not restricted to materialistic societies but is also true in relatively impoverished countries."The principles we've outlined should not be considered as independent from each other," they say. "You shouldn't either buy experiences or invest in others, but rather think about applying as many principles as you can in your daily spending. It's even possible to apply multiple principles with a single purchase."Spending on others, to cite one example, can provide the biggest happiness bang for the buck when people invest in others in a way that connects them to other people and especially to other people they care about.

Turning the money you spend into happy money is hardly an automatic process. We have lots of inflexible spending requirements and habits and think things such as fancy homes and cars bring us happiness when research shows they don't."For one week, keep track of all the money you spend," Dunn and Norton suggest. "Rather than grouping your expenditures into the traditional categories used by the Bureau of Labor Statistics, try putting them into categories according to our five spending principles. Then take a close look at all the discretionary income you've spent that falls outside these categories - and see how much of it you can forego the following week.

"Happy spending!