Consumers Association of Penang

Giving voice to the little people...since 1970

TELEMARKETING OF INSURANCE PACKAGES

The Consumers’ Association of Penang would like to address the public on the issue of the telemarketing of insurance policies.

Based on the complaints we have received, we find that many consumers get caught in the trap of unknowingly purchasing insurance policies that are being promoted through telemarketing.

Critical illness insurance policy puzzles consumers

One of the problems with the critical illness policy is that it is being sold by agents who give policyholders the wrong impression that the coverage is wider than it really is. (A critical illness policy is one that pays out a lump sum upon confirmation that the policyholder has been diagnosed with one of the illnesses or conditions covered under the policy)

For example, the agent assures the policyholder that cancer is one of the critical illness covered but does not explain that it has to be the “right “cancer.

No-Fault Liability IS the better scheme

The Government has not accepted CAP’s proposal for a No-Fault Liability (NFL) scheme for road accident victims and has instead decided to maintain the present system with some changes.

The new third party motor cover which will be implemented early next year, is also a fault-based liability (FBL) system.  Accident victims will lose out with the rejection of the NFL scheme.

Consumers deserve a No-Fault Liability Motor Scheme

The Consumers Association of Penang (CAP) welcomes the announcement by Bank Negara Malaysia (BNM) that it will be consulting all relevant stakeholders next month before presenting the proposed new third party bodily injury and death scheme to the government.

In August 2007, the Attorney General’s Chambers issued a Preliminary Issue paper proposing that a No-Fault Liability Scheme (NFL) be introduced.  There were intensive discussions with all interested parties including BNM on the need for the NFL scheme.
 

Motor insurance - let the Govt take over

Many comments have been made about CAP's proposal for a no-fault liability scheme in relation to motor vehicle accidents (MVAs), and regarding the proposed scheme by Bank Negara Malaysia (BNM). CAP wishes to set the record straight regarding its stand on the proposed BNM scheme as well as respond to the comments made.

Very little is known about the proposed scheme by BNM, but from various reports in the media, it appears that :