Page 56 - LIAM Annual Report 2020
P. 56

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
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