Page 56 - LIAM Annual Report 2020
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54 ANNUAL REPORT 2020
NATIONAL ASSOCIATION OF MALAYSIAN LIFE
INSURANCE AND FAMILY TAKAFUL ADVISORS
LIAM has maintained a good working relationship with NAMLIFA
National Council members over the years. During the year, with the
COVID-19 pandemic, LIAM and NAMLIFA continued to engage and
National Association of Malaysian Life discuss relief measures for the agency force during this challenging
Insurance and Family Takaful Advisors
period.
After due consideration, BNM granted a relaxation from the 30-hour Continuing Professional Development
(CPD) requirements under the BSC Framework to 15 hours, for the year 2020. In line with this change, the industry
also aligned the same, under the Guidelines on Minimum Qualitative Criteria for the Life Agency Force.
Insurance companies are also giving due consideration to their agents who are facing challenges in meeting their
requirements for maintenance of contract by providing flexibility or extension of time to meet the requirements.
PERBADANAN INSURANS DEPOSIT MALAYSIA
In view of the significant impact of the pandemic to the
industry, LIAM wrote to Perbadanan Insurans Deposit
Malaysia (PIDM) on 27 March 2020 to propose relief measures
for PIDM’s member institutions. PIDM was receptive of the
industry’s proposal and in its reply on 29 July 2020, it granted
the reduction of 50% of the levy for 2020 and 2021.
Subsequently, LIAM conducted a survey of member
companies regarding their estimated results for 2020 and
the respective levy assessment impact. Based on the survey result, LIAM further raised its proposal to PIDM on
3 December 2020 to consider revising the Differential Levy System (DLS) benchmarks to mitigate the negative
impact of the scores due to the on-going pandemic.
In its reply of 18 December 2020, PIDM stated that in recognising the impact of the pandemic on the insured
members, considerations on its effects have been given and therefore it will provide the 50% reduction of levy
rates for assessment years 2020 and 2021.
MINISTRY OF HEALTH
A meeting was called by the Ministry of Health on 27 November 2020 with BNM, LIAM, PIAM and MTA to discuss
the issue of alleged interfering in clinical management of patients at private hospitals by ITOs. The issue was
raised by private hospitals to MOH.
The meeting was co-chaired by Dr Ahmad Razid, Director of Medical Practices Division, and YBhg Dato Dr
Rohaizat Yon, Deputy Director General.
There was a consensus that most of the issues were due to lack of communication between doctors/hospitals
and insurers / Third Party Administrators (TPAs). It was highlighted to MoH that the industry is working on a
common digitized platform to facilitate the issuance of guarantee letters and submission of hospital bills,
which would certainly improve the current process flow.
MoH will organize another session between the Association of Private Hospitals Malaysia (APHM), private hospitals,
BNM, insurers and takaful operators in early 2021 and the industry had expressed its readiness to participate in
further discussion on the matter.
On a separate note, MOH noted that the review of the 13th Fee Schedule had been completed and many
new procedures had been included. MOH will organize a briefing session to update the industry in due course.
Life Insurance Association of Malaysia