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CONTRACTUAL SAVING INSTITUTIONS IN MALAYSIA (INSURANCE (Principles of…
CONTRACTUAL SAVING INSTITUTIONS IN MALAYSIA
INSURANCE
Life Insurance
Endowment policy
Term assurance
Whole life policy
Group policy
General insurance
Covers all risks except risk of life
12 months period and renewable
Principles of Insurance
Insured not to profit by insurance coverage
3rd party compensates(LOSS), insurance company's obligation is reduced.
Insured provide full & accurate information
Have a large number of insureds.
Relationship between insured & beneficiary
Lost must be quantifiable
Able to compute the probability of the loss occuring
Principles of Insurance Contract
Principle of subrogation
Principle of at most good faith
Principle of indemnity
Principle of contribution
Insurable interest
Insurance companies
Companies Act 1965
Life Insurance Act 1961
Insurance (Amendment) Act 1983
Financial Services Act 2013
Adverse selection & Moral hazard
Restrictive provision
Prevention fraud
Screening
Cancellation of insurance
Deductible
Coinsurance
Limits on the amount of insurance
Pure risk VS Speculative risk
Pure risk - Insurable
Speculative risk - Good, bad, nothing
Insurance agents
Independent
Exclusive
Assuming risk behalf of customer
Other services- Reinsurance
Takaful
Takaful operations
No gambling
No deception
Riba free investments
Takaful operator acts
Trust for safekeeping
As fund manager
Principles of Takaful
Principle of indemnity
Principle of subrogation
Insurable interest
Principle of at most good faith
Principle of contribution
Unit Trusts
Account structure
Funds & Returns
Aggresive
Moderate
Conservative
Basic features
Assignment to trustee
Confirmation of entitlement
Indirect investment
ROI - regular income+capital appreciation
Types of Funds
Closed-End Funds
Open-End Funds
Types of Unit Trust
Listed unit trust
Unlisted unit trust
Eligibility
Contributions
REIT
A company that mainly owns and in most cases, operates income-producing real estate
Types
Mortgage REIT
Equity REIT
Cooperative societies
Borrows money from FI
Acts as agents & deals to bank
Lends money to member
Other Institutions
Leasing company
CAGAMAS BERHAD
Credit token companies
MBSB