Fire / House owner Insurance

House owner insurance is to cover the insured again any loss or damage to the building, contents due to fire or any others perils taken.

A standard policy cover ( Example)    

1.Fire,lightning,thunderbolt,subterranean, subterranean fire,

2.Explosion

3.Aircraft and other serial objects

4.Impact by any road vehicle

5.Busting or overflowing of domestic water tank or pipes.

6.Hurrican,cyclone,typhoon,windstorm

7.Earthquake,volcanic eruption

8.Flood but excluding damage caused by subsidence and landslip.

9.Theft by forcible and violent breaking.

Optional Benefits

1.Plate and Glass damage

2.Household goods and furnishings

3.Alterations repairs

4.Theft by domestic servant

5. Riot, strike and malicious damage

6 Subsidence and landslip cover

7.Rental

8. Public Liability

9.Others

Make sure when you are getting a fire insurance never under value your property. You can be penalize if there is a fire claim.

Investment Link Plan

This is the latest plan in the market and it's very popular. By buying this plan you can put all your insurance needs in this one plan. It's best to put all your medical here. Please don't get carried away by the word investment as many people sometimes become sacred.
This is the most flexible plan you can choose to have a high cover or high investment. The biggest mistake people made is thinking all the while how he/she can invest and get high returns.
 But most of them forget that the best investment is to invest in yourself by getting a high cover on yourself. Just imagine if something happens to you today let say an accident which is no fault of you, you are diagnosed with a serious health problem which nobody has expected as you are young, healthy, and active in the sports.
Let's say for example you are investing Rm 1000 per month in an investment which will give you high returns let's say 15% per year.
Let us do the mates,
Year 1; Rm 12,000 x 15% = Rm1,800 -You have total Rm 13,800
Year 2 Rm12,000 +13,800 =Rm25,800 x 15% = Rm 3,870 - You have total Rm29,670
Year 3 Rm12,000 +29,670 =Rm41,670 x15% =Rm6,250.50 -You have total Rm47,920.50
You can keep counting if you wish. After 3 years you  have less than  Rm50,000
Now if something happens to you in this 3 years, What are you going to do?
 Which you may say or think nothing is going to happen to me right.
But just think with an open mind is it possible?
Why not Invest Rm500 a month and other Rm500 in Life insurance and get a high cover for yourself. You may be able to get a cover from Rm 200,000 to Rm 1 Million depends on your age, health, and Job. Make sure you are cover for the critical illness when buying your policy.
“A small payment today can make a big difference to how well your loved ones do after you’re gone or you are disabled” 
 The author can be contacted at 0133228582 for more information. 

Motor Insurance

Motor Insurance

 
A motor insurance policy provides financial protection to you in the event your vehicle is stolen or involved in a road accident.
It is important to know your limits of protection you are cover under your policy.

Types of cover and policy's in Malaysia

1. Comprehensive Policy - Make a claim on your own insurer against Accident or Theft
2. Third Party,Fire and Theft Policy - Make a Fire or Theft claim on your own insurer
3. Third Party policy- Only other can make a claim from your insurer.

A vehicle owner may purchase additional cover as:

1.Windscreen - breakage not resulting from road accident
2.Legal Liability to passenger- Your passengers or people from outside your vehicle suing you for injury cause to them by you or your passengers.
3.Compensation for Assessed Repair time- inability to use your vehicle while it is being repaired.
4.Flood-Vehicle damages due to flood.
5.Personal Accident- Injury to you or your passenger.

Accident Assist

Most Insurer provide a free service to help customer it's 24 hours 7 days a week for immediate roadside assistance due to break down or free towing services.
Please do get the phone number for the free service from your agent when you  renewal your policy.

Getting a motor insurance  

 Comprehensive Policy 

This policy covers you for any damage caused to your car or a third party or their property if you are involved in an incident. You can make a claim on your own insurer due to Accident, Theft, or Fire. Most insurance companies cover agree value of the car up to 10 -12 years. What it means the company will pay the sum you have insured and agree by the company.( Make sure you follow the company agree sum assured which is normally higher than the market value.) The reason the agree value is higher than the market value is due to the value of spare parts of the car and not the car price. It's the best policy to get even if your car is old as you will enjoy free break down service and normally without any loading. 

Third Party, Fire and Theft Policy  

This policy covers you for any damage caused to a third party or their property if you are involved in an incident but do not cover your car due to accident .while also covering your own car if it’s damaged by fire or stolen.

Third Party policy-

 Only other can make a claim from your insurer due to an accident. Most insurance company put a loading of 100 -150% on this policy. Most people like to get this policy as the premium is cheap without knowing it's better to pay a litter extra to get a comprehensive cover.

  

Kertar Singh has joint Great Eastern Life Assurance in August 1995 as a part time agent.

Became a full time agent in 2000 after retiring from the army after 22 years.

Selling Life Insurances , General Insurances and Will Writing.

Kertar.en@gmail.com

H.P 013-322 8582

The Power To Create An Immediate Estate.

 

The Power To Create An Immediate Estate.

 

One of the most powerful aspects of purchasing a life insurance policy is the ability of the insured to create an immediate estate which is legally valid and recognizable in the court of Law.

 

The very act of the insured submitting a signed proposal form with payment of appropriate premiums forms a contract between the insured and the insurer.

 

The insured has to ensure that all relevant premiums are paid throughout the policy period .

 As long as the policy is kept in force and the benefits can be realized at the appropriate time the sum insured become payable upon the insured’s death. An immediate estate is created.

We try to accumulate wealth all our life without realizing that we can do it with just a pen when you sign for a policy.

 

Example

Mr Sam is 28 year a non-smoker will be able to create $100,000 in asset,

before he actually earn it, by signing for a $100,000 policy which he have to save about $3000 per year.

 There is no guarantee Mr Sam will be able to accumulate $100,000 in is life time. But with the policy he is guarantee. 

Kertar Singh has joint Great Eastern Life Assurance in August 1995 as a part time agent.

Became a full time agent in 2000 after retiring from the army after 22 years.

He deal with all kind of Insurance from Life Insurances to General Insurances and Will Writing.

Kertar.en@gmail.com

H.P 013-322 8582

 

TRUST POLICY SECTION 166 INSURANCE ACT 1996

TRUST POLICY SECTION 166 INSURANCE ACT 1996.

1. A trust policy in favor of a spouse and children is created if any of them is named as a nominee, but the policy money is only payable on death of the policy owner.
2. In the absence of spouse or children, the parents of insured can be named as nominees to create a trust policy.
3. Such policies only apply to non-Muslims, which again differs from section 23 policies. A Muslim nominee will receive the money as an executor and will have to distribute the policy’s proceeds in accordance with Islamic laws.

Key Benefits of a Trust Policy.

• The policy proceeds can be protected from creditors of the insured.
• Faster claims can be made in the event of death
• The proceeds do not form part of the insured’s estate.

4. This is especially very useful to businessmen who have to stand as guarantors for loans made to people with high risk exposure. The answer is to create an “estate” untouchable by creditors both trade and personal of the estate owner. It can bring some comfort and security to the family of the businessman.

Trust policy

A trust policy is created if the policy owner appointed his wife, husband or children if single parents as a trustees or a nominee.

“Proceeds received by these nominees will be granted protection by law from creditor and hence will not be part of the deceased’s estate.”

“No creditor can take this money from your family”

(by law in Malaysia)

Kertar Singh has joint Great Eastern Life Assurance in August 1995 as a part time agent.

Became a full time agent in 2000 after retiring from the army after 22 years.

He deal with all kind of Insurance from Life Insurances to General Insurances and Will Writing.

Kertar.en@gmail.com

H.P 013-322 8582

Notes: Reference have been made from MII and Gela

POLICY NOMINATION VERSUS WILL NOMINATION

POLICY NOMINATION VERSUS WILL NOMINATION

 

Making a nomination in a policy is very important as the family don't have to wait for an LA (letter of administration) to get the policy money. All he need is a death certificate and proof he is the nominee.

There may be cases where the client has nominated a person other than his spouse, children or parents.(In the absence of the spouse and children)to receive the policy moneys and has named someone else as the beneficiary of the policy in a will.

In such a case the act requires that the policy be paid to the nominee named in the policy, but the policy nominee will receive the money as an “executor” and not as a beneficiary.

He is required to pay all the money in his custody to the person who is named in the will as the beneficiary of the policy.

Example

Mr Raj bought a policy and name his brother Sam as nominee. Mr Raj got marriage to Rita he forget to change the nominee to Rita. Mr Raj died in an accident without a will leaving behind 2 children and a wife. Rita can claim the Insurance money by producing Mr Raj death and Marriage certificate. She need to fill the claim form and any other document require by the insured.

On other end Sam as a nominee can bring the death certificate and other document require by the insured to claim the money as a Trustee and have to give all the money back to Rita.

If Mr Raj parent are alive they are entitle to received 1/3 of the money from Rita.

When there is a Will everything become easy.

About the author

Kertar Singh has joint Great Eastern Life Assurance in August 1995 as a part time agent.

Became a full time agent in 2000 after retiring from the army after 22 years.

He deal with all kind of Insurance from Life Insurances to General Insurances and Will Writing.

Kertar.en@gmail.com

H.P:+6013-322 8582

Takaful - Legal Perspective Of Insurance In Islamic

 

Legal Perspective Of Insurance In Islamic

The legal stand of the Islamic community on insurance should be noted before incorporating the product in the risk management plan of a Muslim.

The key question would be whether life insurance is haram or illegal under Islamic law as parched in the country. This is an important factor, as Muslims are not allowed to participate in schemes that are considered haram to the religion.

As a concept, insurance is not considered haram under Islamic law. In fact, Muslim scholars have pointed out element of insurance existed in Muslim society practices even during ancient times.

Life insurance is a good example. The essential of Life insurance are comparable to the system of mutual assistance in relation to the Arab tribal custom of blood money, Muslim jurists recognized that the basics of shared responsibility in the system of ‘aqila’ as practiced between Muslims of Mecca (Muhajirin)and Meding (ansar) laid the foundation of mutual Insurance.

The generally accepted views of the Muslim jurists that conforms to the rule and requirements of the Syariah as it embodies the following three elements;

1. Al-Gharar –unknown or uncertain factors
2. Al-Maisir- gambling
3. Al-Riba-interest

Muslim jurists has developed a system of insurance which fall within the ambit of Islamic setting of insurance on the concept of al-Takaful.

 

Early History

The establishment of Islamic Insurances is generally considered to be in the early second country of Islamic era when Muslim Arabs began to expand their commercial dealings to India, Malaya and other countries in Asia. (Ref:Malaysian Financial Planning Council)

About the author:Kertar Singh has joint Great Eastern Life Assurance in August 1995 as a part time agent.

Became a full time agent in 2000 after retiring from the army after 22 years.

He deal with all kind of Insurance from Life Insurances to General Insurances and Will Writing.

Kertar.en@gmail.com

H.P 013-322 8582

Notes: Reference have been made from MII and Gela