We are launching our annual 2018/19 Motor Insurance and Takaful Survey to find Malaysia’s Best Car Insurance and Takaful company. In the next 4 months Malaysian drivers can fill out a survey to share their experience with insurance companies. Every week, we give out Cash Prizes and at the end of the campaign we will raffle away smart phone to all the participants. Terms & Conditions apply.

Malaysia has over 20 car insurance and takaful companies that each provide different prices and quality of service. This is similar like hotels. Some hotels cost more, but provide 5 star service. Some hotels are low-budget, but provide less services to the customer and only have 1-2 stars. Our independent math model shows you which insurance company provide 5 star service to the customer and can cost more.

This year you can win weekly prizes of cash and a grand prize of either an iPhone 8 or Samsung S9. You choose.

Check out our page about past winners and prizes here. 

This year is the 4th time that iBanding is running the Motor Insurance Survey. Last year Etiqa Takaful and Takaful Malaysia won the Award for Best Takaful company. Etiqa won the Best Car Insurance Award for conventional insurance.

The ranking and awards are based on actual feedback from thousands of Malaysians that have a valid motor insurance. This is important, because only if you drive a car and have insurance, you can have experience with your car insurance. The survey is not a popularity contest, in which the company with the most vote wins. Through scientifically proven questions, the actual customer experience of drivers are captured to rank the insurance companies against each other.

Advantages of iBanding’s Car Insurance and Takaful Ranking

• Ranking is based on customer experience, not popularity vote
• Winners are selected by an independent math model, not from a panel of paid judges
• Survey is not sponsored by insurance companies

Step 1:
Fill out the survey

Click on the link to start filling out the survey. They survey has 10-15 questions and can be filled out in less than 5 minutes.

Step 2:
Confirm your email

You will get an email to verify your email address. This is important to make sure that your entry is valid.

Step 3:
Share for extra chances

You will get an individual Lucky URL that you can share with your friends to increase your chances of winning. Every time a friend fills out the survey with your Lucky URL you get 3 extra tickets to win the grand prize.

Have questions? Leave us a comment below

With these rankings as a guide, we hope the consumers are able to make more informed decision when choosing the company to insure their cars.

And to those who intend to purchase theirs from Syarikat Takaful Malaysia, the number one motor takaful company as voted by the Malaysian consumer for two consecutive years, we hope that this article will help guide you through the process.

Let’s start

The car takaful plan from Syarikat Takaful Malaysia can be purchased online from their online portal called Click for Cover or here.

It is a well streamlined and easy to use web portal and we assure you that anyone can do it within a few minutes. However, to ensure accuracy of information, it is advised that you have your vehicle registration card or renewal notice from your previous insurance / takaful company ready.

The first thing you need to do is key in a few information such as your NRIC number, car registration number (plate number), postcode and email address.

Step 1 – Get Quotation

If there’s a tricky part about the purchasing process, this could be it. But if you have a good knowledge about your car, or if you have your card with you, this step shouldn’t be an issue.

Information required here is largely vehicle and model-specific, such as variant, import type (local assembly, complete knocked down etc), type of anti-theft device fitted. You are also required to disclose what type of parking you have at your residence, if the car is still under bank loan and how many permitted drivers will be driving the car.

Once you’ve entered all the info, you should be able to see the preliminary price for your car takaful on your right.

Rebate 10%

This is the discount that you get for buying (or renewing) your insurance (or takaful in this case) online. This discount is not specific to Syarikat Takaful Malaysia. You should be getting this discount when buying directly from any insurance and takaful companies ONLINE.

Cash Back

It says: You may be entitled to an estimated Cash Back subject to financial performance, applicable tax deductions and no claims incurred during the coverage period.

According to Syarikat Takaful Malaysia, they are the only takaful operator to consistently offer this cash back as a reward for their clients who have not made any make within the coverage period. For more explanation about cash back, read here.

Personal Accident Coverage

As a Takaful Malaysia’s customer, you are entitled to a RM15,000 Personal Accident coverage for each passenger and driver. This comes at no additional charge to you.

Step 2 – Add Additional Coverage

Here you can add additional coverage that you would like to have. One of these is mandatory for you to add and that is the Named Drivers. Here you need to key in the number of drivers allowed to drive your car and be covered by your insurance policy. The first two drivers are free. You will not be able to leave this page as long as you have not put in a number.

Other additional coverage that you may choose are:

• Cover for Windscreens, Windows and Sunroof (highly recommended!)
• Legal Liability to Passengers
• Legal Liability of Passengers
• Strike, Riot & Civil Commotion
• Inclusion of Special Perils
• Compensation for Assessed Repair Time (CART)
• Extension of Cover to Thailand

All these come with a brief and helpful description. Once you add them to your policy, you will notice the quoted price to the right changes.

Step 3 – Certificate Owner Info

Easy step of keying in your personal and contact information.

Step 4 – Driver Info

Another easy step. Here you need to fill in the name, NRIC number, gender and relationship of the ‘named drivers’. The number of drivers that you will need to fill is according to the number chosen by you in step 2. If you only chose 1 driver, then there isn’t much for you to do here. Simply continue.

Step 5 – Confirm & Pay

Time to check that everything is alright and make payment.

Please note here that it says:

You will have to bear a compulsory excess of RM400 in the event of claim if your vehicle is driven by a person who is not named in your certificate or if the driver holds a Learner (L) driver’s licence. The excess is the first amount that you have to bear in respect of each and every claim.

So make sure that if your car is often driven by others, such as a spouse, a sibling, friend or child, they are nominated as named drivers in step 2. As mentioned, the first 2 (this includes you) are free. The rest are chargeable at RM10 per person.

Once you are happy with the coverage, you can make payment via credit card or bank transfer. The transaction is swift and secured. Voila. You have yourself a takaful cover for your car, at a 10% direct discount, and 15% cash back if you don’t make a claim within the next 12 months.

What are the benefits that you will be getting with the car takaful policy you just purchased you may asked? Well, let’s look at them here.

1. Comprehensive coverage – this means that in case of an accident, not only your plan will cover for the damage and injury of the third party (if the accident is caused by you), but also the damages suffered by your own car. For more information about the different types of car insurance policies, click here.

2. 24/7 roadside assistance program – the round-the-clock emergency car assistance Tele Bantuan Program offers:
– Minor roadside repair: jump start services, change of battery or tires, emergency delivery of petrol and/or minor wiring work with free labour costs up to 2 hours
– Towing service: free towing service up to 50km per incident from breakdown scene to the nearest Takaful Malaysia’s panel workshop and maximum of RM200 to the nearest Takaful Malaysia’s panel workshop in case of accident

3. Cash back reward no claims – You car insurance will be cheaper with extra cash back if you do not file a claim and the company is doing well.

4. Complimentary Personal Accident coverage – for both you and your passengers up to RM15,000 per person.

Sounds good! Ready to purchase? Click here.

In May 2018, I experienced my first flight cancellation on AirAsia, which resulted in an overnight stay because there was no other flight scheduled on that day. In the below article, I describe AirAsia handled the flight cancellation and how I made claims against my travel insurance with Allianz and AirAsia that could pay me as much as RM 700.

This is my full ordeal and lessons learned, and I hope that readers too will obtain some understanding and insights into their rights as a passenger when experiencing such an event. Also, make sure to read our Travel Insurance Malaysia guide to stay updated about latest promotions and relevant information. 

Why did I buy travel insurance for this trip?

I travelled to Gold Coast, Australia from Kuala Lumpur in May 2018. The currency exchange rate at the time was almost 1 to 3, i.e. 1 Australian Dollar (AUD) was worth RM 3. That meant that everything in Australia was at least 3 times more expensive than in Malaysia. A normal lunch that costs RM 12 in Malaysia costs AUD 12 in Australia. But that AUD 12 is RM 36 after conversion. Expensive for me.

The trip was a big investment (flight, hotel, food and park visits), hence I did not have much extra money if something were to go wrong. I could not imagine how much a visit to the doctors would cost me in case I got sick during my travel, so I decided to buy Travel Care from Allianz. Why Allianz? Because I wanted to go for scuba diving while in Australia and Allianz covers for that particular extreme sport whereas many travel insurances do not.

Here’s what happened on the way home from Gold Coast, Australia:

May 27th @ 18:00

My flight was scheduled to fly out at 20:25 local time and arrive in Kuala Lumpur at 17:10. That was the plan.

I arrived at the airport almost 3 hours earlier because I needed to check in my luggage, but also I looked forward to go home. I checked in my luggage and waited at the gate.

May 27th @ 20:25

We still did not start boarding the plane. Finally an announcement was made that the flight would be delayed.

May 27th @ 21:40

We were informed via the PA system that our flight has been cancelled and that there will be no more flights tonight to Kuala Lumpur. The next flight will be tomorrow morning. We were instructed to leave the gate.

This was not my first flight delay nor cancellation so I did have  a little bit of experience. I knew that I had to find the AirAsia service desk to get a hotel paid by the airline.

Here is the rule that airlines follow:

If you are leaving for your trip from your home country and the flight is cancelled, the airline will not pay for anything. You are expected to just go home and come back later when the flight is scheduled to take off again. However, travel insurance will pay you some money, but more on that topic later.

But if you are already on your trip when the flight is cancelled, then the airline will provide you with food voucher and accommodation. You might wonder how can they tell if you are on a trip. If you have a travel visa to Australia, then you are clearly on a trip away from home.

Many people do not know that the airline will provide accommodation for travelers, so many end up paying for the extra night stay out of their own pocket – good for the airline because they save money, but bad for you, if you did not know and paid for the hotel on your own.

May 27th @ 22:00

At the AirAsia counter, we were informed that our new flight will go early next morning and that hotel and breakfast will be provided. The buses were waiting outside to bring us to the hotel.

I was really fortunate that I had booked AirAsia’s Premium Flex for this flight. The main reason I bought it was because of the luggage and hot seat selection. I needed to have luggage for the trip, so either the Value Pack or the Premium Flex were an option. I decided with the Premium Flex because of the extra hot seat. The flight time was 8 hours to Australia and 8hr and 40 mins back to Malaysia, so the extra leg room was important, especially since both flights were overnight flights.

How did Premium Flex help?

With the flight being cancelled, hundreds of people were lined up at the AirAsia counter to change their flight and get accommodation. Only a few people had booked business class or Premium Flex like me, so we were able to use the much shorter VIP line. Yeahhh. Lucky me. Not an advertisement for AirAsia, but this was really convenient.

May 27th @ 22:20

I arrived at the Mantra Hotel. Since I exited the bus very quickly, I was able to check in quickly. The staff was friendly and informative. Unfortunately, when I asked them about dinner option, they informed me that everything was closed. Even Domino’s Pizza stopped delivering at 22:00. So, no dinner and food since I was planning to have dinner on board of the airplane. Also no breakfast the next morning since the hotel starts serving breakfast at 6:30 and the bus leaves at 6:30. I went to my room, which was very nice and spacious, showered and went to bed hungry.

May 28th @ 6:00am

I woke up at 6:00am to get ready and headed down to the lobby.  The bus was already waiting to go to the airport. I looked and found a nearby pastry shop, where I could buy myself some croissant and a coffee.

While waiting for the others to board the bus, I checked out the hotel a bit. The place was really nice, but unfortunately, I did not get the chance to enjoy the facilities.  It was too late yesterday and too early today. I took a picture of the swimming pool as a memory.

May 28th @ 7:00am

I arrive at the airport, but no one from AirAsia was there. Everyone was a little grumpy and not happy with AirAsia because why have brought us to the airport so early if no one was going to be there. Also, many of them did not have breakfast, because the staff told us earlier that breakfast would be provided.

May 28th @ 7:21am

Luckily the wait time was not too long. 21 minutes later, an AirAsia staff finally showed up and started changing our tickets. However, once I received my ticket, I did not get any breakfast voucher. Only after I followed up and asked for it did the AirAsia staff provided me with food vouchers of AUD 10 each.

Later, I found out that the AirAsia staff did not provide food vouchers to everyone. Only when you ask for it, would they give you the voucher. If you do not ask, you do not get the voucher. Well, I do not think it is good practice by AirAsia. I understand that this method saves the company probably thousands of ringgits, but a normal traveler gets cheated by it. Not a practice that I would have expected from AirAsia.

I asked the staff if I could get a confirmation letter for the flight cancellation/delay, but she kindly informed me that we would need to go to the service counter in Kuala Lumpur to get it. It makes sense because the new flight could still experience further delay. This way the actual delay time could only be safely recorded in Kuala Lumpur.

May 28th @ 19:40 KL time

Many hours later, I finally arrived back at the KLIA 2 airport. Once I got my luggage, I headed straight to the AirAsia service counter. I needed to get written confirmation from the airline that my flight was cancelled and rescheduled in order to claim from my travel insurance. Also, I needed to find out how many hours the flight was delayed. This took quite a while as they were only 2 counters for the whole airport. But I knew it was important to claim from the travel insurance, so I waited patiently.

May 29th @ 12:00pm KL time

After I finally got home and rested, I went online to do the claim.  Below is how I did the claim for AirAsia and Allianz Travel Guard. So for this flight, I had two travel insurances. One from Allianz and one from Tune that came automatically with the Premium Flex when we upgraded to Hot Seat. 

What can we expect from our Travel Insurance?

Tune Protect

The Tune Protect insurance came with a 1-hour On-time Guarantee which we definitely qualified for because the flight was delayed for more than 12 hours. Looking at the fine print, Tune Protect pays RM 100. It is not much, but it is something.

Allianz Travel Care

Looking at Allianz insurance fine print, we should get RM 300 for every 6-hour delay up to a maximum of RM 2,000. 

Now you might wonder, why are we looking at flight delay when the flight was actually cancelled? The reason is that AirAsia has provided a replacement flight the next day for us, so the flight cancellation became a flight delay of more than 12 hours. So in total, I expect to  get paid the amount of RM 600 from Allianz. That’s quite a lot of money that would pay for some of the travel inconveniences I had to endure.

How to make a travel insurance claim from Tune Protect insurance?

Claiming from Tune insurance was really easy. I went to the webpage https://claims.tuneprotect.com/

<click image to enlarge>

There I had to just enter the flight booking number and all my information showed up automatically. I selected the “1 hour On-time Guarantee” that I would like to claim for. It also prompted me for my address and bank account information where the money should be transferred to.  Once I clicked submit, I received a confirmation email with my case number.

Wow. I was impressed. This was so easy. All I had to provide was the flight booking number and some personal information. No paper document were needed. Not even the flight delay confirmation letter that I collected from the airport was needed. This is really easy and makes me comfortable to buy travel insurance from AirAsia. I guess it is simpler for them because the flight was on AirAsia and they could easily check internally for the flight delay.

The next day, I received a confirmation email from Tune Protect stating that the claim has been approved and that I will receive the RM100 via bank transfer and that if I don’t receive it in the next 14 days, then I should contact them again. I checked my bank account and in actual fact the RM100 was banked in on June 11th. In total it took Tune Protect only 8 working days to pay out the claim.

• May 29th, 2018: Submitted claim
• May 30th, 2018: Confirmation that claim is approved.
• June 11th, 2018: Claim paid out.

I am really happy with my experience with Tune. Now let’s see how Allianz is doing.

How to make a travel insurance claim from Allianz?

So first, I went online to look at the claims procedure for travel insurance. It basically says to download the claims form and send it to the insurance company. It did not say that you can send it via email, but want to give it a try via email to see if Allianz would accept it. Here is the link to the form in case you also need to make a claim: Allianz Travel Care Claims Form

<click image to enlarge>

Since this was for a flight delay, I also had to fill out the following section.

<click image to enlarge>

I filled out the form online with a PDF editor and sent the claims form together with the AirAsia flight ticket and boarding pass to the email address: [email protected]

There was a reason why I didn’t send the written confirmation letter from AirAsia to the email address. I believe that many travelers do not know that they need to collect it so I wanted to test if Allianz would still pay out the claim without this document. If they do, then it would be awesome and very customer oriented by Allianz. If not, we will send them the letter that we have already received.

After we submitted we received a generic acknowledgement email together with a Reference ID.

June 14th @ 10:00am

I received a call from the Allianz claims department, saying that the claim has been approved and that we need to submit an e-payment form to Allianz to receive the money. The full instruction from them was to send the e-payment form as well as the header of the bank statement so that they could double check that the details in the e-payment form were correct with the bank information. Allianz claims that there have been many cases where people sent in the wrong information.

To make things easier: Here is the Allianz E-payment Form that you can download and send together at right from the beginning, so hopefully your claim can be handled faster than mine.

Until today I still have not received the payment or feedback from Allianz regarding my travel insurance claim. Below the timeline up until today:

• May 29th, 2018: Submitted claims form online via email
• May 14th, 2018: Request for e-payment form
• June 11th, 2018: Follow up email to [email protected]. No response. 
• June 26th, 2018: Still no update or payment from Allianz. Follow up email to [email protected]. 
• June 27th, 2018: Still no response from Allianz. Called the call center under 1-300-88-1028 to find out what the status of the claim is. The staff informed me that the payment was made just yesterday and that the payment should be in by 3 working days.
• June 30th, 2018: Payment of RM 600 has been made to my bank account. It is great that the claim finally has been paid out, but besides the bank deposit, I did not get any notice from Allianz. I did not get even an email. Hopefully, they can improve on it in the future.

Conclusion

It was fortunate that I thought about buying travel insurance for this trip to Australia. The whole incident cause a lot of inconvenience as well as additional cost to me. And because the flight cancellation happened at night, I did not have the chance to enjoy the extra day in Australia. This incident had cost me:

• One day less vacation, because I had to take the extra day off
• More than 14 hours of inconvenience without dinner
• Vending machine dinner and extra breakfast at the hotel

On the plus side,

• I was able to record this Flight Cancellation / Flight Delay article with AirAsia and Allianz as the Travel Insurance company.
• Received RM 100 from Tune and potentially RM 600 from Allianz this week.

In the future, I will definitely buy travel insurance for flights outside Malaysia. After this experience, I feel that claiming against a travel policy by Tune on an AirAsia flight will be much faster and more convenient. So thumbs up for their convenient online portal and speedy service.

Allianz Travel Care is still good, because it is one of the few companies that offer cover for scuba diving. I am glad that they accepted the claim via email and without the Travel Confirmation letter. This is really customer-oriented. They still need to improve on their communication with the customer because I did not receive any update on the claim. Also, the claim surely can be paid out faster than 30 days. AirAsia has proven that it can be done.

Your Cybersecurity Risk.

Operating in the technology services industry requires your business to stay on top of rapidly evolving systems, software updates, client needs and so much more. Keeping pace with these development is extremely tough and increases the level of risk that an IT professional would have to go through. Here are some examples of IT professionals that may be affected.

What Insurance Should An Internet Business Purchase?

A) All Risk

The All Risk is an insurance package policy that is often used to provide a comprehensive coverage for small business who want to protect their own business equipment such as expensive software, computers, monitors, cloud-based system, etc.

However, the business nature of IT professionals is different from other professions. Majority of IT personnels would normally bring home office equipment such as laptops in order to finish their work and meet deadlines. In case a fire-related accident were to happen at home and causes damage to the computer, this insurance would be liable to cover the cost of the damage.

For an IT business to take up an All Risk insurance policy, it should specifically state the following:

• Type of Equipment: Serial Number and Total Sum Insured.
• Policy restriction: Whole Malaysia or Office Only

Insurance protection for equipment anywhere  in Malaysia is more expensive than protection only for the office. 

B) Cyber Liability

A cyber related IT insurance policy is more relevant to companies that are involved within the e-commerce space. With recent news such as the CIMB Data Breach and even the Facebook Data Breach, the security of client information has become of paramount importance.

Since the majority of start-up businesses are inclined towards technology as their preferred business venture, many up and coming start-ups are exposed to high risk for the data breaches. If the protected information is compromised, then the start-up would be liable for the expenses claimed by their client.  

Cyber Liability Insurance can help pay for those expenses and reduce the burden on business cash flow.

Thus, IT businesses are encouraged to sign up for at least one, if not both insurance policies below:

1. The First-Party Cyber Liability Insurance

A coverage provided by Cyber Liability Insurance in their first section is as per below diagram:

2. Third Party Cyber Liability:

This coverage comes into effect when one of your clients suffers a data breach and sues your firm in order to recover the damages. Even more so if your company designed the programme for the client.

Take for example:

A majority of banks use software that are written by third-party coding companies. If and when there is a data breach, the losses may amount to millions of Ringgit. If the client feels unsatisfied with the report and/ or reasoning offered by your company, they have the right to sue your company for damages. Thus, the Third-Party Cyber Liability Insurance may help you pay the costs:

C. Employee Benefits Insurance

The Employee Benefits Insurance is a protection for your employees and offers additional incentives for them to stay within your organization. With growing importance on healthcare, it is important for the IT-related business to have a comprehensive healthcare package that covers inpatient and outpatient insurance benefits for their employees.

Additionally, employers can also add the Personal Accident insurance coverage into the employee insurance package for additional coverage pertaining to dangerous sports. By doing so, the employees would be covered for any accident during sports activities — which is where many personal accidents occur.

Author: Sharian Raj of NVS(M)SDN.BHD

NVS (M) Sdn Bhd is the company that brings to the public the Malaysia Business Insurance Calculator (SMCITY)

What is the Malaysia Business Insurance Calculator i.e. SMCITY?

Looking to remodel the cycle of for SMEs to get their business insurance, we built a customer-centric online product that is intuitive and responsive to fill the gap between insurance companies and their distribution channels.

Providing a guideline to open for negotiation with insurance company at an industry rate, our Business Calculator software allows business owners to calculate the average premium needed for their Business Insurance in relevance to each industry and/or Small Medium Enterprises.

After all, with the advent of technology, business owners are now expected to deal with insurance online. In the same way they use consumer friendly online technologies to deal with banking, payroll, accounting or sales, these online technologies equate to convenience.

Yesterday, iBanding had the great opportunity to attend the Press Release announcement of Policystreet, an insurance technology company. In the newly established co-working space Dojo KL, Policystreet has invited the press to announce its newly formed partnership with Allianz Malaysia Berhad. The co-founding Team of Policystreet, Yen Ming, Winnie and Wilson have done an amazing job in putting it together.

Zakri Mohd Khir, Group Chief Executive Officer as well as CEO of Allianz General Insurance took the stage to say a few words about the partnership: “In re-engineering the way we do business – being digital-centric and service oriented – Allianz is investing in digital strategies and deploying solutions that respond to industry challenges and take advantage of opportunities to reshape and improve the insurance business.”

Zakri further emphasized that insurance is a serious business and that insurance professionals remain important to educate Malaysians about insurance products. Because of the complex nature of insurance, Allianz will focus on working with digital intermediaries to provide online solutions. Policystreet is the first start-up to launch the digital version of intermediaries for Allianz.

Afterwards, Lee Yen Ming, Chief Executive Officer of PolicyStreet took the stage and said: “We are excited and honored to partner with the leading insurer in Malaysia. By integrating with Allianz, we are now able to offer convenience and flexibility.”

If you are looking for a great deal on travel insurance, Policystreet is offering up to 50% discount on Allianz travel insurance products. Offer is valid until April 30th, 2018.

Best Medical Card in Malaysia – 2019 Ultimate Guide

Imagine you are in a foreign country, just landed at the airport to enjoy your well deserved vacation and finding out that your bag is not there at the baggage claim area. What do you do in this kind of situation? 

In this article, we will share with you two ways to get compensated for all the inconveniences when your bags are delayed, damaged or lost. We will also share expert tips from frequent travelers on how to avoid these luggage problems and also to prepare you in case the unfortunate does happen to you.

In 2016, there were over 10 million bags mishandled worldwide. With the rising number of global travelers and new global routes each year, mistakes happen, especially when passengers and luggage move from one aircraft to another. This increases the risk of your luggage not showing up at the baggage claim area where they should. Imagine the disaster. If you are lucky, you may get them back a few hours or even days later. In the worst case scenario however, your bag may be lost forever along with all your precious belongings in it.

There are a number of ways a bag can be mishandled. In 2016, airline reports showed that 77% of bags were delayed due to mishandling during transfer, tagging and ticketing error, failure to load, airport customs error or even due to bad weather. Reports also showed that 16% of mishandled bags were damaged and 7% were lost or stolen. In fact, lost and delayed bags are the most common type of travel insurance claims around.

(Source: SITA Baggage Report 2017)

Get compensated for lost, damaged or delayed luggage

1. Travel insurance can save your long awaited great escape

Travel insurance is the best way to protect you financially when your luggage is delayed, damaged or lost. This is one of the reasons why many big travel agencies and airlines work together with insurance companies to offer travel insurance. 

Take AirAsia for instance. Any AirAsia Premium Flex, Premium Flatbed or Value Pack Seat customers get the Baggage Delay and the 1-hour On-time guarantee protection for free. In the case of baggage delays, you will get RM 120 if they are delayed for more than 6 hours. This applies exclusively when you fly with AirAsia.

Tokio Marine on the other hand, compensates you RM 200 if your baggage is delayed for the same duration of time. For every additional 6 hours, you get another RM 200, up to a maximum of RM 800. As long as you are insured by Tokio Marine, it covers you for any airline that you take.

This can be a huge help and money saver to you. With the money being compensated for your delayed luggage, you do not need to worry about spending your own money to purchase even the simplest things like a toothbrush and clothes. If you’re in a country with cold climate, the money can be spent well by buying a good jacket to keep you warm. On the other hand, if you are on a tropical island, the money can let you go out and buy a new set of bathing suit so you waste no vacation time at all.

You can also claim from the insurance company in the case of stolen luggage. Tokio Marine for example, will pay up to RM 5,000 for this. Just make sure that you do not put in any valuable items like a laptop and digital camera in your luggage because normally insurance company will not pay for those. Travel insurance is not responsible for your every single belonging and it certainly cannot replace all the precious memories that you could lose especially if you aren’t careful. But the payout does offer a decent amount to help you replace most of the items you have lost.  

2. Airlines, they can compensate for your baggage trouble too

The other type of reimbursement comes from the airlines themselves. Airlines can pay compensation regardless if you purchased a travel insurance or not. From airlines, you can claim up to a maximum of RM 6,200.  You can read more about it from the Malaysian Aviation Commission (MAVCOM). You will need to check with each airline separately on how much you can get. It is not as easy as travel insurance. This is why many airlines partner with insurance companies to make it more convenient for you. The key to keep in mind is that you can only claim from the airline or your insurance company. You cannot claim from both.

What should you do when your baggage is lost?

The baggage service desk is your friend

As soon as you realized your bag is not at the baggage claim area, head over to the baggage service desk. Each airport has at least one baggage service desk while larger airports will even have separate desk for each airline. So ask around and be sure to look for the right one.  You are required to provide all the necessary information when reporting for your lost luggage, such flight number, as well as description of your luggage, color, size, brand and type etc. You will also need to leave your contact details – phone number and address so they can deliver the bags to you once it is found.

Very important: Before you leave the baggage service desk make sure that you get some written confirmation from them that your bag is delayed. Also, get the contact number and website address to monitor and track your baggage recovery progress.

If you have travel insurance, check how long do you have to wait before you can claim from the insurance company. Most insurance companies will only pay out money after a delay of at least 6 hours. You can find that information online at the companies website or you can contact your insurance agent. Also, make sure that when you leave the baggage service desk that the date and time is recorded in the report. Knowing how much your travel insurance will provide you, will help you decide on how much to spend when shopping for replacement clothes or toiletries. When you go shopping, make sure that you keep all receipts, because some insurance companies will require you to produce the receipts when making your claim.

When you return from your vacation, immediately contact your insurance agent or insurance company to inform them about the incident. You will most likely need to fill out a form to make a claim.

How to prepare for or avoid baggage trouble?

It is nice to have the safety of travel insurance that helps you protect from unnecessary expenses when your luggage is delayed or stolen. However prevention is always better than cure.  So here are some proven tips from frequently travelers that can help you reduce the chance of delayed or lost baggage.

Tip 1: Avoid flights with many stop-overs, if possible

The fewer stop-overs your flight has, the fewer chances your bags will get lost. So if your flight route and your budget allows it, go for direct flights with as few stop-overs as possible.

Tip 2: Do not book flights with short stop-overs

When you cannot avoid stop-overs, common thinking is that you want to have the stop-over as short as possible, so that you can reach your final destination faster. However, the expert traveler will make sure that there is enough time between flights, in case the earlier flight is delayed. There are many reasons why a flight can be delayed, such as bad weather and aircraft technical complications. This makes it all very likely that you and your luggage will not arrive at you final destination at the same time.

Tip 3: Mark your luggage

One of the most common reasons for lost luggage is that it was mistakenly taken by someone else from the baggage claim area. Unfortunately, bags all too often look the same. So make yours unique by putting a flashy ribbon or sticker so that when they come onto the baggage claim belt, you can easily identify them from the rest, and other people do not mistaken them for their own.

Tip 4: Put a luggage tag inside

Many of us will put a luggage tag outside so that in case the luggage is lost, the finder has information about the owner. Unfortunately, the reason why bags are permanently lost is that the airline tag as well as your luggage tag is gone or unreadable. The airline will then check inside if there is any information about the owner. If the airline is unable to find any information about the owner anywhere inside or outside the luggage, it will then be declared lost.  To be even safer, have identification tags both inside and outside!

So that’s it, easy tips for you to follow the next time you go on your trip. For more info, watch the video below. Don’t forget to follow us on our Facebook page to get more travel tips!

Personal accident insurance or PA is a annual insurance cover that compensates against events caused by accidents.

Many may already know the concept of life insurance and its purposes. If you have met an insurance agent before, the chance is high that you have been recommended personal accident insurance. PA is one of the most recommended insurance products around.

Although life insurance can be the best form of protection to many, it may not be the best solution for others. Some people may have their reason(s) for not wanting to purchase life insurance while others may not have the luxury of choice. If you fall into the latter group, this article can offer a comforting alternative for you.

Not everyone can buy life insurance

Some of the reasons why you cannot purchase life insurance are:

1. Your Age

Life insurance generally only available to those below the age of 65. This age limit does not mean that it won’t cover a person over 65 years old. It merely means that once you are 65, you can no longer purchase life insurance. If you have bought the life insurance earlier, your life policy can protect you and your family up to the golden age of 100 years.

At an older but qualified age, for example, 50 years, life insurance also becomes too expensive to purchase. This increase in price as you get older is one of the reasons why you want to buy life insurance at a young age. When you buy life insurance at a young age, the insurance does not get so expensive as you get older.

2. Your Medical condition or family medical history

Some people may not qualify to purchase life insurance due to their pre-existing medical condition. In short, the pre-existing medical condition is defined as any injury, disease or other physical condition, existed during the time of application. Cancer, diabetes and heart-attack are examples of pre-existing conditions. In the best case, the insurance company will exclude those pre-conditions from life insurance, so you can still buy it.

For instance, if the applicant has been diagnosed with and treated for cancer before, then the insurance company will either deny him life insurance or exclude this condition in your coverage. When it is not mentioned during the insurance application, the insurance company will not cover any cancer-related medical cost. The exclusion of pre-existing medical condition is why it is better to get life insurance as early as possible when you are still healthy.

However, this isn’t all there is. Insurers will also go to the extent of wanting to know the family medical history of the applicant. If the applicant has a history of cancer or heart-attack in their family, insurance companies may decline their application for life insurance.

3. Insurance price too high

The price for life insurance, especially whole life insurance, can be relatively high, for:

• Low-income earners – Many low-income earners cannot afford to purchase life insurance. The cost of life insurance starts approximately RM 1,000 a year. For some Malaysians, this amount is hard to come by. With many more responsibilities and commitments that are deemed priority, owning a life insurance policy is perhaps the furthest thing from their minds.
• Older people – As mentioned before, the older you get, the more expensive the life insurance will be. If you have not bought life insurance early, then starting life insurance later at an old age can be very expensive.
• Medical pre-condition and family history – When you have a medical pre-condition or a family history, the insurance company will want to exclude this condition from your insurance cover. This exclusion will limit the benefit of the insurance because the most likely medical condition is the reason you wanted to have protection in the first place.

What is a cheaper alternative to Life insurance?

If you fall into any of the above group, but still want some form of insurance coverage for death, Personal Accident insurance is the cheapest alternative.

Personal Accident Insurance as an alternative to Life Insurance

What is personal accident insurance?

Personal accident insurance or PA is an annual insurance cover that compensates against events caused by accidents. Although more suited as a supplement to life insurance, PA can be a cheaper alternative to full life insurance.

What does personal accident insurance cover?

PA insurance covers death and total permanent disability (TPD) of the insured that is the result of an accident. It does not cover natural death, which means “death occurring in the course of nature and from natural causes such as age or disease” (Merriam-Webster). This is the main and most critical difference between PA and life insurance. However, PA does have a few unique advantages over life insurance.

Advantages of PA Insurance

1. Can be bought at an older age

Many insurance companies will not allow you to purchase life insurance, especially when you are 60 or older. PA, on the other hand, can be purchased at a much older age. For example, Syarikat Takaful Malaysia offers its myClick PA up to the age of 70.

2. No medical or family background checks

People who cannot buy life insurance because of pre-existing medical condition or family history can still buy PA insurance. There are no doctor visits needed and no questions about medical conditions in your family. This simplification is why buying PA insurance is very simple compared to life insurance.

3. It is cheaper

Personal accident insurance is much less expensive compared to life insurance due to its restrictive and limited coverage. Often you can get it for free together with other insurances. For example, Takaful Malaysia offers free RM 15,000  coverage to each driver and passenger with the purchase of motor insurance.

How much cheaper is PA compared with life insurance?

For example, Allianz PA for a 60-year-old person with a sum insured of RM 120,000 costs around RM 189 per year. The life insurance with the same sum insured can cost more than RM 2,000 per year. This price is more than ten times the personal accident insurance.

However, this is by no means an apple to apple comparison. One should keep in mind the vast difference in the risk covered between the two types of insurance policies.

4. You can buy it short term

Another significant advantage that personal accident has over life insurance is that you can buy it yearly. Most life insurances have a minimum duration of 5 years. This contract means you always need to make a long-term commitment and ensure that you have enough money to pay for the premium. PA, on the other hand, is paid and bought yearly.

5. Extended cover for dangerous sports

Life insurance excludes dangerous sports and lifestyle from their policy. For example, if you die in a sky diving accident, then your family will not receive the sum insured. Special personal accident insurance can protect these kinds of specific risks.

For example, Allianz Shield PA covers amateur sports like scuba diving and bungee jumping.

Personal Accident insurance CAN NOT replace Life Insurance

Albeit the advantages, personal accident insurance cannot be a replacement for life insurance. These are some disadvantages of personal accident insurance:

1. Does not cover natural death

Personal accident insurance provides financial protection against accidental death and not against natural death, like death from old age or illness. For instance, if the insured suffers a heart attack while driving, the PA policy will not pay, because the cause of death was natural.

2. No cash value or bonus

PA insurance is unlike life insurance that accumulates cash value that the policy owner gets upon cancellation of the contract or at maturity. It is unlike motor insurance either where a no claim bonus in terms of premium discount is given if no claim has been made during the earlier policy period.

3. No tax relief

In Malaysia, some insurance policies offer tax relief. For instance, life insurance policies get a tax relief of up to RM6,000. While education and medical policies get RM3,000. PA insurance, however, is not entitled to any tax relief.

As always, it is best to do your research before you decide on insurance. Speak to an experienced insurance agent or financial advisor to get expert views on the matter, post your queries on the insurance forum here.

iBanding has made it again into the Malaysian newspapers. This time an article was published in “The Edge Malaysia”. Under the title “Bringing transparency to the agency force”, iBanding’s insurance agent directory was fully covered in one full page. The key benefits of Insurance Agent Directory were described in full detail. To our great amazement, the journalist Laili Ismail captured all the details very accurately. We could not have wished for more. Also mentioned were the Insurance Company Directory as well as  iBanding’s iBantu Mobile App that helps customers connect better with insurance agents.

The bottom part of the article highlights some of the preliminary results that we have gained through our annual Motor Insurance Survey.

To read the article, click on this link Bringing transparency to the agency force

PDF version of the article here: Bringing transparency to the agency force

It’s the most wonderful time of the financial year as we draw it to a close. One of the many things ending this month is your income tax 2017 eligibility period. I am sure many of you are aware of the various reliefs and rebates offered by our generous government so that we can claim back a (tiny) portion of our hard earned money.

And of these reliefs that can be claimed, none is as hefty as the amount spent on insurance premiums, which is what I will be focusing on. Aside from getting the comprehensive coverage when purchasing medical or life insurance, which should be sufficient enough reason to buy, you will also be able to enjoy the tax relief benefits.

Under the Malaysian Income Tax Act 1967, these incentives are given to encourage each Malaysian citizen to own some form of protection, so we can be prepared when the unexpected does happen. Also, I think this is so we don’t over burden the government hospitals and drain their resources when we fall sick. From the official website of the Inland Revenue Board of Malaysia, here are the reliefs as listed;

Premiums on life insurance and EPF which is up to RM6,000

Note that this is lumped together with your EPF contributions. Not sure how much of your policy is conside red the life portion? Fret not, as your insurer will provide you with a statement for tax relief purposes which lists the breakdown into each category. So for this relief, the description is usually written as “LIFE”. Haven’t received it yet? Check with your agent or insurer.

Premiums on children education or medical benefits which is up to RM3,000

Scenario 1: Assured: Parent, Beneficiary: Child
Under child education, the beneficiary has to be the child if the parent is the assured, meaning the child has to be the nominee. Also the maturity payout must be between the ages of 14 to 25 years of age.

Scenario 2: Assured: Child, Beneficiary: Child, Policy owner: Parent
Alternatively, the assured can be the child if the parents are the policy owner and a payor benefit is included. Again, the maturity payout is between ages 14 to 25 years.

In terms of medical policies, there are several criteria as well to fulfill. Firstly, it must be in force for over a year. Any expenses that are related to medical treatment (accident/ illness/ disability) are considered claimable. Hence, only your medical card qualifies and not any lump sum payment of critical illness and TPD. If it is a standalone policy the entire amounts is deductible, but if it is attached as a rider, please check the statement from your insurer on the exact amount to input.

Annualized premium vs actual premium paid

Sometimes, your annualized premium would be around RM 3,000 but upon receiving your premium statement the following year, you get a shock and wonder why only RM1,500 is deductible? Simple, the tax deduction is based on the actual premiums paid for that particular year, hence for this case, seem like the policy was taken up mid-way through the year.

So if you maxed out both your insurance reliefs, amounting to RM9,000, get ready for a sizable refund of the taxes you have already paid from LHDN sometime next year. But what if you haven’t yet? No worries. There is still time till 31 December 2017 for you to qualify for these reliefs next year.

If you would like to get insurance advice, contact us with above form, so we can follow up. Do bear in mind that you need to make a full annual payment to really maximize your tax reliefs before year closes out. So put that Christmas/year-end bonus to good use!

Happy holidays!

Author: Samuel Raj Dhairianathan

Samuel is a former Medical BioScience graduate from Monash University. He holds several prestigious titles to his name such as FLMI, ACS, and ARA.

Samuel possesses a decade of insurance experience as an Underwriter with AIA, Singapore as well as a substantial experience in the Customer Experience department. Eventually, he pursued a career as a Registered Financial Planner.

Read more about Samuel in our interview with him.