Tips: Insurance Issues

Insurance is one of the important elements to protect your financial. However, you need to make sure you are not involved with mistrusted insurance or even scam.

These tips from Bank Negara Malaysia (BNM) may help you to avoid the problem.

Read the policy contract carefully

You have to read and understand the terms and conditions of the policy upon receiving the policy contract from insurance companies. You are given 15 days from the date of receipt to scrutinise contents of the policy. Use this opportunity to validate the information and evaluate whether the policy suits your requirement. Understand the limitations or the exemption clauses. Please contact the insurance company or its agents for further explanation, if necessary.

Importance of disclosure

You must disclose all material facts in your application form completely. If your agent fills up the application form on your behalf, please read and understand the requirements in the form prior to signing the form. Failure to do so could cause your insurance policy to be terminated or the insurance company might repudiate your claims.

Purchase of insurance policy

You can purchase insurance policy either directly from the insurance company, through authorised agent, or banks/financial institutions which has bancassurance arrangement with insurance companies. If you are buying the insurance policy from an agent, please ensure that he/she is an authorised agent of the insurance company. If you have doubt, request for proof such as registration/authorisation card of the agent or contact the insurance company directly. All authorised agents are registered under Persatuan Insurans Am Malaysia (PIAM) or Persatuan Insurans Hayat Malaysia (LIAM).

Premium payment

You have the choice to either pay the premium directly to the insurance company or through agents. You have to ensure payment is made under the insurance company?s name and also ensure that you receive the original receipt from the insurance company. Avoid making cash payment to the agents, if possible.