CONTRACTUAL SAVING INSTITUTIONS IN MALAYSIA (PRINCIPLES OF INSURANCE…
CONTRACTUAL SAVING INSTITUTIONS IN MALAYSIA
assuming risk on behalf of their customers
exchange for a fee, called a premium.
PRINCIPLES OF INSURANCE
Insured must provide full and accurate information.
Insured not to profit by insurance coverage.
Relationship between insured and beneficiary
If a third party compensates the insured for the loss, insurance company’s obligation is reduced by the amount of the compensation.
The insurance company must have a large number of insureds so that the risk can be spread among many different policies.
The lost must be quantifiable
The insurance company must be able to compute the probability of the loss occurring.
PRINCIPLES OF INSURANCE CONTRACT
Principle of Indemnity
Principle of Subrogation
Principle of Utmost Good Faith
Principle of Contribution
Whole Life Policy
ownership is divided into units of entitlement
each investor is known as “unit holder''
TYPES OF UNIT TRUSTS
Unlisted Unit Trust
Listed Unit Trust
TYPES OF FUNDS
Cooperatives in Malaysia
Methods of Distribution to Civil Servants
The cooperative borrows money from a financial institution and then lends it to Government employees or its members.
The cooperative uses or acts as agents and deals directly with banks to procure loans for civil servants.
The cooperative lends money to members from the pool of monthly subscription fees that it collects.