Page 50 - LIAM Annual Report 2020

ANNUAL REPORT 2020
48
48 ANNUAL REPORT 2020

EXEMPTION FROM STAFF TRAINING EXPENDITURE
Following a joint appeal from LIAM, Persatuan Insurans Am Malaysia (PIAM) and MTA, BNM has exempted
insurance companies and Takaful operators (ITOs) from the minimum Staff Training Expenditure (STE) for 2020.
Under BNM’s STE guideline, ITOs are subject to a minimum training expenditure of 3.5% of staff gross salary.
Due to the COVID-19 pandemic and the restrictions imposed to break the chain of infection, ITOs had to
adopt e-learning as face-to-face training could not be held. The cost of conducting e-learning is lower than
face-to-face training. As the COVID-19 situation still does not permit face-to-face training and companies
are conducting their training virtually, the industry has appealed to BNM to continue the exemption of STE
for 2021.

PERLINDUNGAN TENANG EXPOSURE DRAFT
BNM has issued the exposure draft on Perlindungan Tenang in
December 2020 for the industry’s feedback.

The Perlindungan Tenang initiative was launched in 2017 by
BNM and the insurance industry to promote financial inclusion
particularly among the underserved market, the bottom 40%
of households (B40). The Perlindungan Tenang products are
affordable, accessible, easy to understand and administratively
simple to make claims. To date there are 13 ITOs offering these
products in the market.
BNM has drawn up the exposure draft on Perlindungan Tenang to
further the development of insurance and takaful products that
suit the needs of the unserved or underserved segments as well
as promote innovative, sustainable and inclusive insurance and
takaful business models. The exposure draft sets out the proposed
requirements and guidance in providing microinsurance/
microtakaful products under Perlindungan Tenang.

Life Insurance Association of Malaysia