Frequently Asked Questions & Answers
1. What is Insurance and why do I need it?
Insurance is a means of protection from financial loss. In some cases, Insurance is mandatory – when obtaining a mortgage or when constructing a building. Otherwise, it is optional but recommended for 3 main reasons :
• Reduce Worry. With the right type and amount of insurance, you can be protected from the risks to property and person that are inherent in everyday life.
• Helps to prevent loss. Brokers and insurers work to help prevent loss with information and advice on road safety, anti-theft, fire prevention and fraud reduction.
• Frees up capital. Because insurance protects your assets, you do not have to put money aside in case of future losses. This security applies to individuals and businesses.
2. Who is Perinsuran Brokar?
We are one of the more established home grown Insurance Broker, which specializes in insurance and risk management. We act on behalf of our clients and provide advice in the interests of our clients.
3. Is Perinsuran licensed by any regulatory body?
Yes, we are licensed by Bank Negara Malaysia under the Insurance Act 1996 and under the Takaful Act 1984. We are also a member of The Malaysian Insurance and Takaful Brokers Association (MITBA), which imposes very stringent requirement in regard to professionalism and financial standing, and it is this professional body, that will act on complaint from the public in order that all brokers follow a strict code of ethics and conduct.
4. Who do we work for?
We work for our clients, whether they are individuals or businesses. We research the market for suitable options, share those options with you, and help to apply for and purchase coverage from insurance companies.
5. What can we do for you?
We provide consultancy services using our in-depth knowledge of risk and the insurance market to identify and arrange suitable insurance cover – both for businesses and individuals.
As per international standards, we do not charge a fee to the client as the Insurance Company, which underwrites the risk, compensates us for this service. A dedicated team will be assigned to provide you and your business the following services:
• Designing a suitable insurance programme for your specific needs.
• Obtaining various quotations from various insurance companies.
• Checking out the financial securities behind the preferred Insurance companies. In our capacity as Insurance Broker & Consultant we are able to deal with any insurance companies in the world and are able to check out the securities behind those companies, advise you on the stability of the insurer and whether they have the facilities to carry the risks required and provide prompt claim services.
• Preparing evaluation report on these quotations, covering various options available and our recommendations. This will ease your decision-making.
• Prepare claims manual.
• Provide training for your staff.
• Direct involvement in all matters relating to claims.
6. How can you benefit from our service?
You will gain maximum benefits from our expertise on insurance coverage, reasonable premium at zero payroll cost. We have skilled risk managers who can advise you on the risks you face, and how to manage them. Insurance is just a part of the overall risk management strategy, in that it transfers risk to another party (the insurer) at an agreed premium. Having effective risk prevention and loss minimisation strategies may help reduce premium costs.
7. Do you have to pay for our services?
We do not charge a fee to our clients. We receive remuneration in the form of brokerage from the insurance companies in recognition of the insurer’s cost savings when dealing with us as your broker.
8. Does it cost more to use a broker?
Not at all. In most cases it costs less because brokers have knowledge of the insurance market and can negotiate competitive premiums on your behalf.
9. How can you be sure we will pass on your premiums?
There are mechanisms in place set by Bank Negara to protect consumers in the unlikely event that premiums are not passed on by a broker. In almost all cases, the clients will not be adversely affected should a claim arise under such circumstances.
10. How do we know that the insurance companies you are recommending or credible?
As we are heavily regulated by the Central bank and our servicing staff has to fulfill a high level of qualification and a minimum number of years of experience before dealing with the insurance players. We are better placed than others to know which insurers are more credible than others. Our job is to make certain that the insurer with whom we place our clients business performs as clients expect and more.
11. Should you let your broker know if your circumstances change?
Yes, and straight away. New circumstances can have a great bearing on the risks you face, and these will need to be factored into your insurance requirements. Not doing so could result in your insurer rejecting your claim.
Ask us to provide written confirmation that any changes have been passed on to your insurer.
12. How fast can my claim be settled?
As your broker, we will ensure that no time is lost in carrying out the proper formalities to pave the way for a prompt & fair settlement. In many cases we can negotiate a settlement with the insurer on your behalf to quickly get the best outcome for you, and to guarantee your life returns back to normal as soon as possible.
13. How can I control my Insurance costs?
For all property policies:
- To ensure that you are adequately covered, review your policies at least once a year, or when your circumstances or property changes.
- Increase your deductibles for all policies. Accepting a higher deductible can reduce the cost of your premiums.
- Installing alarm systems to improve protection against theft and accidental damage are often looked upon favourably by insurance companies.
For motor insurance:
- Insurance costs vary considerably by make, model and year, driver’s experience, based on theft levels and the cost to repair or replace them, as well as the intended use.
- Install an anti-theft system if the vehicle doesn’t come with one to reduce the cost.
- Avoid making claims on small collisions, windshields, dents, nicks and other light damage to preserve your NCD status.
For commercial insurance:
- Consult a broker about conducting a complete loss prevention audit to identify possible hazards and offer solutions to reduce exposure to a broad range of risks from injuries and fire to fraud and theft.
- Consider business-interruption insurance, to protect the income of you and your staff while insurance remedies is being made for fire, water or other damage.
- Ensure that your employees are aware of safety and hiring practices as well as your workplace’s harassment policies.
- Consult with your insurance broker before expanding into different geographical areas. Costs may vary dramatically.
14. Why are insurance premiums increasing?
Insurance is a complex business. Even on claims-free policies, premium increases reflect the increasing cost for insurers. Policy premiums are partly dependent on the overall claim levels within the industry (both legitimate and fraudulent), the state of the economy, the levels of protection required and the degrees of risk that customers will accept.
For more information on this matter, feel free to contact us.
15. Isn’t it cheaper to buy insurance direct from an insurance company?
You may be enticed to think in this way, however for the most part purchasing insurance directly does not mean lower premiums. Insurance companies have used a lot of resources on marketing and administration costs, which must be passed on to their clients. Brokers, however are allowed to shop in the market to deliver the most ideal price for the coverage you need.
16. What is Premium Warranty of 60 days?
Under the premium warranty, the insured is required to pay the premium due under the policy in full within 60 days from the date of inception of the policy.
17. How long does it take to receive a policy after date of inception?
Standard practice of the Insurance companies in Malaysia takes about 21 days after the date of inception of the policy.
18. What are your rights and responsibilities as a consumer?
Insurance companies, along with the brokers and agents who sell insurance, are committed to safeguarding your rights when you shop for insurance and when you submit a claim following a loss. Your rights include the right to be informed fully, to be treated fairly, to timely complaint resolution, and to privacy. These rights are grounded in the contract between you and your insurer and the insurance laws of your province. With rights, however, come responsibilities including, for example, the expectation that you will provide complete and accurate information to your insurer. Your policy outlines other important responsibilities. Insurers and their distribution networks, and governments also have important roles to play in ensuring that your rights are protected.
• Right to Be Informed
• Responsibility to Ask Questions and Share Information
• Right to Complaint Resolution
• Responsibility to Resolve Disputes
• Right to Professional Service
• Right to Privacy