Wednesday, March 28, 2012

Upcoming Workshop

Continuing Professional Development Workshop
 “Wealth Preservation Through Islamic Context”

En.Zainal Abidin Wazid

 He has been involved in the insurance industry for 20 years. Graduate of RFP & Shariah RFP, ChIFP, FChFP & ChLP. Completed his Diploma in Insurance (MII LUTC). Qualified in his company Award & Recognition. Regularly invited as speaker for University, College and Government Agency (INTAN). Regular speaker for National Service Programmes (PLKN). Moderator of RFP – Zakat classes (Module 4). Actively involved in many organisations, events & conventions.



He is a Past President and Fellow of Namlifa and was a member of the Board of Directors of the Malaysian Insurance Institute of Management (MIM). He has been involved in insurance and financial services since 1979. For more than 20 years, Mr.Karuna has worked with insurance agents and financial planners in “closing’ life insurance sales for business owners as well as preparing “ Buy-Sell” and ‘Key-Man” agreements. Over and above his wide range of academic qualifications, he has also been admitted to the Malaysian Bar as an Advocate and Solicitor.


Part 1 : Wealth Creation & Preservation of Estate thru Islamic Perspective (by En.Zainal Abidin Wazid)

•      Fundamental in Islamic Financing

•      Elements embodied in Wealth Preservation

•      Wealth Preservation planning – tools & instruments

•      Hibah, Waqaf, Nazar, Wisayah, Wadiah etc

•      Shariah & Legal issues in administration of Islamic Law in Malaysia

Part 2 : Estate & Succession Planning From Islamic Perspective (by Mr.Karunamoorthy) 

•      Characteristics of the Islamic wills

•      Fundamental in Estate Planning

•      Steps in Islamic Estate Planning

•      Legal issues in administration of Islamic Law of Succession

•      Succession Planning via Business insurance concept

Date: 25th April 2012

Time: 9.30am - 5.30pm

Venue: NAMLIFA, Training Room, Taman Miharja, Jalan Cheras, Kuala Lumpur

Fee: RM138.00 NAMLIFA member / RM188.00 NON member (Inclusive lunch & 2 tea-breaks)

CPD hours: 8.0 hours ( Structured)

Closing date for registration: 13th April 2012 - Limited Seats!!!

For details and registration, just fill in the attached form and fax it to 03-92811435 or email it to: for immediate seat confirmation.

Tuesday, March 27, 2012

Buyers Beware!

Thanks to credit cards,
too many people spend money they don't have, 
to buy things that they don't need, 
to impress people who they don't know and...
 who dont care!!

Emloyees Provident Fund

  1.   The nominees of a contributor receive the full sum upon the death of the member. 
  2.  If the contributor was a Non-Muslim, the nominees are effectively beneficiaries and are allowed to keep the moneys for themselves.
  3.  If the contributor was a Muslim, the nominees receive the moneys as administrators or trustees of the estate and are to distribute them in accordance with Islamic Law principles.e.g if the deceased did not leave a Will, then all the moneys will be distributed according to    the Faraid rules.
  4.  If a contributor has named more than one nominee, he may choose to allocate the appropriate percentage for each person. If he does not, then they will receive the moneys in equal shares.  
  5. If the nominees are minors, EPF will retain the moneys and pay to them upon reaching the age of 18 years.
  6.   If no nominee is named, the moneys will be deemed as part of the estate and will be administered accordingly i.e. testate and intestate procedures will apply.
  7. If one of the nominees named by a member predeceases him and he did not make a fresh nomination, then only the portion of the deceased nominee will fall under the estate of the deceased, to be administered and distributed accordingly. The surviving nominees will receive their portion of the moneys.
  8. If the member dies as a bankrupt, EPF will still pay out moneys to the nominees. This does not prohibit creditors from pursuing the nominees to recover their debts as the moneys are considered part of the estate of the deceased and subject to his debts. 
  9.  Those who have attained the age of 55 years and have withdrawn their moneys but continue to work subsequently should make a fresh nomination.

Sunday, March 25, 2012

Medical Insurance Benefits

very medical insurance policy represents a contract between the policyowner and the insurer. Such a contract is subject to terms and conditions which both the insurer and the policyowner must comply. The most important responsibility of the policyowner is that when he applies for the policy contract he must ensure that all the answers given in the application form are true to the best of his knowledge. Once the contract is in effect, he only needs to keep the insurer informed, if there are significant changes to his circumstances, for example his occupation.

The insurer on the other hand must honour all the terms and conditions of the policy contract. All insurers are licensed by Bank Negara Malaysia (BNM) and policyowners must know and believe that insurers must pay out all valid claims. There are several mechanisms in the industry that ensure protection to policyowners such as the Insurance Mediation Bureau, Complaints Department of Insurance Companies, Customer Service Bureau (CSB) in BNM as well as Laman Informasi Nasihat & Khidmat (BNMLINK).

When buying medical insurance, policy owners must understand that not all expenses are payable by the insurer. Most polices pay only if the insured person is hospitalised or has to go through surgical or similar procedures. Of course, in the case of treatment for accidents, the insured person can claim for expenses for treatment even if he not hospitalised. Most importantly, policy owners must ask and understand clearly what are those expenses that cannot be claimed form the insurer. Pre-existing illnesses or medical conditions are usually excluded from the policy contract. Policy owners must further look at the brochure or policy document and inquire about the list of items under the heading of “Exclusions”.

In Malaysia, because of BNM guidelines, there are many similar terms and conditions in the medical polices issued by all the insurers. However, the following are specific features to look out for

i)       Annual Premiums – this will depend on the age as well as the gender of the insured person.

ii)      Co-insurance – whether the policy owner is required to pay part of the claim eg. 10% of the expenses.

iii)     Annual Limits – this is the maximum amount that may be claimed in any one ‘policy year’.

iv)     Lifetime Limits – the maximum that may be claimed over the years. After this amount is reached, the insurer will no longer renew the policy contract.          

BNM guidelines compel insurers to renew all medical insurance polices up to the age as specified in the contract. In Malaysia, these maximum ages are usually between 70 to 85 years of the insured life. Premiums are usually “age banded” i.e. the amount will be the same for every 5 years as represented by the insurer. However, the insurer is allowed to increase the premiums by means of “loading” or “health extra”, if the claims experience of the insurer is high. If a insurer intends to increase the overall premiums in a specific medical plan offered to the public, it must obtain the approval of BNM.

In the future articles on this subject, we shall discuss common “Exclusions” found in medical insurance contracts as well as difficulties that policy owners may face when making claims from insurers.      

Welcome to my Blog

After many years of talking about it, I have finally decided to DO something about it and start up a blog. This comes on the heels of many requests to do so from my colleagues, students and friends in the insurance and financial services industry.

Here, you will be able to find current and up to date information regarding insurance law and estate planning and the importance of having a will.

It is also a place for me to share my thoughts and perspective on life, things that I have learnt along the way and various personal development techniques which have been of great help to me.

I hope you will find this to be a quick and useful source of information and an all around educational experience.