Thursday, February 19, 2009
IS A BROCHURE PREPARED BY AN INSURANCE COMPANY RELIABLE?
Like what I have mentioned in my previous post titled MY FIRST INSURANCE CLIENT. (December 29, 2008), insurance companies in Malaysia don't lie because they are closely and fully controlled by Bank Negara Malaysia (BNM). It is some of the irresponsible insurance agents who lie. According to the Insurance Act 1996 (Section 149), besides the proposal form and policy, the brochure must be submitted to BNM for approval if required by BNM. Non compliance with this section carries a fine of RM 1 million.
However, some of the figures like annual return rate of 9.5 % in the brochures are just a projection, estimation or approximation unless the figures are stated in our contract of insurance with the word 'guaranteed'.