April 2007
Insurance Planning Guide for Malaysians
Hospitalization & Surgical Insurance /Medical Insurance / Health Insurance (Updated on 9 May'07)
Directory of Insurance Companies in Malaysia
Articles
Article I: Snatch theft attack-- Is your insurance covered?
Article II: The truth about life insurance
Article III: What? I need to pay extra insurance premium?
Article I: Snatch theft attack-- Is your insurance covered?
Recently a friend of mine asked me a few questions about insurance claims related to snatch theft attack. I hereby used his questions together with a few case studies to share with you what I told him.
Case study I:
A saleslady was snatched. she was pushed down a staircase by the thief. She landed head first. She was rushed to a government hospital and warded in a serious condition. She passed away later. The police had classified this case as murder.
What types of insurance are payable?
1) Death benefit under Personal Accident insurance: Payable*
2) Death benefit under Group Personal Accident insurance: Payable*
3) Death benefit under Whole Life insurance: Payable
4) Death benefit under Endowment insurance: Payable
5) Death benefit under Investment-linked insurance: Payable
*Death benefit on all Personal Accident policies is payable regardless of number of policies the deceased have.
Case study II:
A 25-year-old administrative executive was seen struggling with two snatch thieves on a motorcycle who had grabbed her handbag. She clung on the bag and was dragged about 4m. She is now warded at a private hospital with injuries to her spine and paralysed from the waist down.
What types of insurance are payable?
1) Hospitalisation expenses & Surgical fees benefits under Medical & Health insurance (Commonly known as medical card insurance): Payable**
2) Medical expenses benefit under Personal Accident insurance: Payable**
3) Temporary partial disablement weekly benefit under Personal Accident insurance: Payable**
4) Emergency accidental out-patient treatment benefit under Medical & Health insurance: Payable**
**All the above benefits claim are based on reimbursement basic. Reimbursement means you get back what you lost or you can’t claim more than your actual expenses.
Total & Permanent Disablement (TPD) benefit under Personal Accident insurance: Payable***
TPD benefit under Life insurance: Payable***
TPD benefit under Endowment insurance: Payable***
TPD benefit under Investment-linked insurance: Payable***
***The definition of TPD among insurance companies may vary, but it is commonly defined as:
i) Totally and permanently for the insured person to earn any wages; or
ii) Loss of two limbs (example: both arms, both legs, or one arm and one leg, totally loss of sight of both eyes) by amputation; or
iii) loss of use of two limbs; or
iv) totally and permanently cannot perform activities of daily living like dressing, bathing, eating, walking, etc.
Case study III
A 58-year-old senior citizen was riding her motorcycle to a community hall in an early morning about 5am. She was said to have been waylaid by a group of four young men. She fell off her motorcycle and injured her face and died in hospital later. Her purse and jewellery were missing. Police reported that she died of a heart attack.
What types of insurance are payable?
Death benefit under Life insurance: Payable
Death benefit under Endowment insurance: Payable
Death benefit under Investment-linked insurance: Payable
Death benefit under Personal Accident insurance: NOT PAYABLE****
***Death benefit under Personal Accident insurance is only claimable when the cause of death is due to accident. In this case, policy report says the victim is died of heart attack.
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