dr. insurance

Travel Insurance

2009-02-15T23:13:00.000-08:00

Travel insurance coverage is usually limited to the period of your travel. However, some insurance companies may offer various combinations of protection to cater to the specific needs of customers, including long-term annual policies for a frequent traveller.

A travel insurance can be purchased for you and/or your family to insure against travel-related accidents, losses or interruptions, such as:

	Personal accident

	medical-related expenses

	loss of travel or accommodation expenses due to cancellation or curtailment of the journey

	losing your baggage, belongings and money

	losing your passport

	personal liability

	delayed baggage

	travel delays

	hijacking

	repatriation

Life Insurance

2009-02-15T22:58:00.000-08:00

Life insurance is an insurance coverage that pays out a certain amount of money to the insured or their specified beneficiaries upon a certain event such as death of the individual who is insured. This protection is also offered in a Family takaful plan, a Shariah-based approach to protecting you and your family.

The coverage period for life insurance is usually more than a year. So this requires periodic premium payments, either monthly, quarterly or annually.

The risks that are covered by life insurance are:

	Premature death
	Income during retirement
	Illness

The main products of life insurance include:

	Whole life
	Endowment
	Term
	Investment-linked
	Life annuity plan
	Medical and health

Types of Takaful

2009-02-14T23:17:00.000-08:00

The general takaful concept is you contribute a sum of money to a takaful fund in the form of participative contribution (tabarru’). You will undertake a contract (aqad) for you to become one of the participants by agreeing to mutually help each other, should any of the participants suffer any form of misfortune, either arising from death, permanent disability, loss, damage or any other such misfortunes as covered under the takaful you personally undertake.

The takaful protection plan is based on Shariah principles and offers many unique features to policy owners. There are two types of takaful businesses: family takaful and general takaful.

	You must have a legitimate financial interest in the subject matter to participate in a takaful plan.

	A takaful contract is based on the principle of utmost good faith (trust), whereby you need to disclose all material information required.

	You can only recover your financial loss and not gain any profit as a result of a quantifiable loss.

	In determining the compensation, the takaful operator will identify the actual most important cause that brought about the loss.

	After you have been compensated for your loss, the takaful operator has the right to claim from any third party responsible for your loss.

	If a loss is covered by more than one takaful plans or insurance policies, the takaful operator that has made payment to you may call upon other takaful operators or insurance companies to contribute proportionately to the payment.

General Insurance

2009-02-13T23:03:00.000-08:00

General insurance is basically an insurance policy that protects you against losses and damages other than those covered by life insurance. For more comprehensive coverage, it is vital for you to know about the risks covered to ensure that you and your family are protected from unforeseen losses.

The coverage period for most general insurance policies and plans is usually one year, whereby premiums are normally paid on a one-time basis.

The risks that are covered by general insurance are:

	Property loss, for example, stolen car or burnt house
	Liability arising from damage caused by yourself to a third party
	Accidental death or injury

The main products of general insurance includes:

	Motor insurance
	Fire/ Houseowners/ Householders insurance
	Personal accident insurance
	Medical and health insurance
	Travel insurance

Motor Insurance

2009-02-12T23:03:00.000-08:00

You need motor insurance when you buy a motor vehicle. Motor insurance covers your vehicle, be it a motorcycle, a car or a lorry, in case of accidents or theft.

When it comes to buying a policy, always:

	Check the market value price of your vehicle. If it is a new vehicle, the insured value will be the purchase price.

	Ensure that your vehicle is adequately insured as it will affect the amount you can claim.

	Give all material facts about your vehicle, including previous accidents (if any), modification to engines, etc. When in doubt, it is best to ask your insurance company.

Make sure that the amount covered in your motor insurance certificate reflects the market value of your vehicle and not any other value to avoid over-insurance or under-insurance.

If you are involved in a motor accident and have a comprehensive cover, you may either make an own damage claim or a third party claim. There are different procedures involved. Inform your insurance company immediately and act according to their instructions. You may need to send your damaged vehicle to an approved workshop. You may check for the list of approved workshops from your insurance company. Make sure you send all relevant documents to support your claim to your insurance company as soon as possible.

	You may cancel your motor insurance policy at any time by notifying your insurance company in writing, inclusive of the date you want to stop the policy.

	It is a good idea to have a new policy in place before cancelling your previous one so there is no gap in between coverage.

	Insurance companies also generally offer a refund premium based on how old your current insurance policy may be, the newer it is when you cancel it, the more refund you will receive.

Dealing with Intermediaries

2009-02-10T23:15:00.000-08:00

An insurance intermediary is a person or a company that helps you in buying insurance. Insurance agents, insurance brokers and financial advisers are insurance intermediaries.

On the other hand, a takaful intermediary is someone who solicits takaful business or invites potential customers to enter into takaful contracts with operators. They are also known as takaful agents and takaful brokers.

An insurance or takaful agent represents an insurance company or takaful operator and primarily sells insurance policies or takaful plans issued by the insurance company or takaful operator it represents. An insurance or takaful broker on the other hand represents the customer and advises the customer on the most suitable insurance policy or takaful plan. A financial adviser is an independent party that provides financial planning services to the customer based on the customers’ financial needs.

These differences are illustrated in the table below:

Types of
Intermediaries

Representation /
Registration / Licensing

Insurance
Agent

Takaful
Agent

Insurance/
Takaful Broker

Financial
Adviser

Represents

Insurance
Company

Takaful
Operator

Customer

Licensed/Registered by:

PIAM
(general agents)
or LIAM
(life agents)

Registrar of
Takaful
Intermediaries

Bank Negara
Malaysia

Deal with an agent, broker or financial adviser with the following characteristics:

	Good knowledge of insurance and/or takaful products

	Understands your needs and interests

	Ensures you understand what you are buying

	Does not over-promise or over-sell

	Factual, not pushy or intimidating

	Delivers quality and timely service

Protect your interests and rights:

	Deal only with registered/licensed intermediaries.

	Deal with intermediaries with proven track record or those with good referral from friends and relatives.

	Be truthful about yourself and declare material facts.

	Never be persuaded to sign on blank forms or anything you don’t understand.

	Never be persuaded to lapse an existing policy to buy a new life policy.

	Ensure that you understand the products you are buying.

	Read the policy benefits and terms carefully, and compare them with other similar products.

	Shop around to get value for money.

	Buy only what you need and what you can afford.

	Ask for sales materials, for example the sales illustrations, product pamphlets or customer fact find form (for life products only), and keep these documents safely.

	When in doubt, always ask for more information from the intermediaries or seek clarification from the insurance company or takaful operator that offers the insurance or takaful products.

	Ask for a receipt as the proof of premium payment and keep it safely.

Are You Covered?

2009-02-09T23:19:00.000-08:00

We take care of our prized possessions including our home and our car. We even insure them because we don't want anything to happen to them. So why is it that most people fail to apply that same level of care and concern towards themselves? Towards their loved ones?

Of course, we don't expect bad things to happen to us, but life is unexpected. Insurance cannot make the future more predictable, but it can at least be there when you and your loved ones need it most.

Things I Should Know

	Basic principles of insurance & takaful
	Types of insurance
	Types of takaful
	Where can I get an insurance or takaful product?

What Else Can I Do?

	Email this to a friend
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	Give us your feedback

	What policies do you have? Have you taken any insurance for yourself or does your employer provide you with life and medical insurance? What about your family? Your spouse? Your children? Are they protected?

	If no, then it's time to do some serious thinking about it. Think about how you're protected, and about what you need to protect.

Before you rush off and buy a policy just for the sake of having insurance, do some research. Not all policies are suitable for you. Different policies have different product features, benefits, conditions and exclusions.

Do your research and choose the type of policy that best suits your needs and life stage. Protect yourself. Protect your loved ones and get the most out of your money.

We don't like to think about it, but our time on earth is a limited gift. You might have prepared something to ensure that your family is well taken care of after you're gone, but have you done enough? Life insurance and family takaful can provide them with additional financial security, so that they can live comfortably after your passing. And with policies like investment-linked insurance and child education plan, your family may have the comprehensive protection required.

Preventing Vehicle Theft

2009-02-09T23:07:00.000-08:00

Vehicle theft is one of the most traumatic experiences you can face, but there are ways to prevent you from being a victim of this crime. Some key steps you can take to protect yourself are:

	Lock your vehicle doors, and any additional car theft prevention locks if you are leaving your car for a period of time.

	Never leave the vehicle keys inside the vehicle unattended.

	Never leave your vehicle's engine running, even if you will only be away for a minute. Vehicles are commonly stolen at convenience stores, petrol stations, ATMs and outside house compounds when owners leave the vehicle engine running to run errands or to unlock house gates.

	Ensure your vehicle windows are properly closed up. Check all the doors are locked.

	Do not leave valuables in your vehicle. However, if you have to, place valuables out of sight in the boot. Ensure that no one sees you placing valuables in the boot.

	Park in well-lit areas - vehicle theft usually occurs at night under the cover of darkness.

	Park in attended lots - vehicle thieves do not like witnesses and prefer unattended parking lots.

	Park your vehicle in the compound of your house rather than outside. Lock both your vehicle and the gate for improved security.

	Professional thieves are able to steal any vehicle. However, you can make it difficult for them to steal your vehicle. The more layers of protection on your vehicle, the more difficult it is to steal.

	Your budget and personal preferences should determine how many layers of protection and which anti-theft devices are best for you.

Generally available anti-theft devices are:

	Engine immobilizers

	Better door and ignition locks

	Security patterned or coded keys

	Radio/CD players with security code or removable face plates

	Window etching

	Car alarms

	Steering wheel / gear / brake pedal locks

	Tracking devices