TITLE
BUSINESS PROPOSAL OF PRUDENTIAL ASSURANCE MALAYSIA BERHAD
PREPARED BY
Muhammad Hisyamuddin Amin
Muhammad Adib b Azizan
Muhammad Shazarul Hafiz b Ghazali
Muhd Zul Amirul Amin b Che Mohd Zohari
Muhd Aliff Omar b Shamsudin
2012653284
2012299106
2012607112
2012619246
2012245998
PREPARED TO
EN HADZLI B ISHAK
LECTURER OF BUSINESS MANAGEMENT DEPARTMENT
UiTM KEDAH
SUBMISSION DATE
24 MARCH 2015
TABLE OF CONTENTS
NO
PARTICULAR
PAGE
Table of Contents
Principle of Insurance
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REMARKS
Prudential Assurance Malaysia Berhad (PAMB) was established in Malaysia in 1924. For
the financial year ended 31 December 2014, it achieved RM1.12 billion in new business annual
premium equivalent (APE). New business sales include both life insurance sales and Takaful
contributions. Takaful products distributed by PAMBs Wealth Planners and agents are
underwritten by Prudential BSN Takaful Berhad.
As a leading and innovative insurer, PAMB serves the savings, protection and investment
needs of Malaysians by offering a full range of financial solutions through its 45 branches
nationwide. With more than 1,500 employees, PAMB is committed to helping people achieve
their hopes and dreams for a brighter and financially secure future.
Prudential Assurance Malaysia Berhad is not affiliated in any manner with Prudential
Financial, Inc, a company whose principal place of business is in the United States of America.
Demonstrate Care
& Understanding
We pursue new
initiatives and
challenge ourselves to
create opportunities
Collaborate
We encourage
openness, mutual trust,
and teamwork
throughout the
organization.
Deliver Excellence
Priori probability
Which can be determined when the total numbers of possible event are
known.
II.
Empirical probability
III.
Judgmental probability
The other related concept that relate with the risk is:
1. Hazard
Hazard is conditions that increase the chance of loss. It can be divided
into three which is physical hazard, moral hazard and morale hazard. For
physical hazard is a physical condition thats increase the condition of
loss. For moral hazard, it is a character defect in an individual that
increase the chance of loss. And finally is morale hazard that is
carelessness or indifferent to loss because of existing of insurance.
2. Peril
Peril can be determined as the cause of loss.
3. Loss
Loss is a reduction or disappearance of economic value.
Classification of risk
Can be divided into three which is:
A. Pure and speculative risk
Particular risk is a risk that effect only individual not the entire
economy or community.
Contain the risk of premature death, risk of old age, risk of poor health,
risk of unemployment.
b) Property risk
c) Liability risk
Under our legal system, you can be held legally liable if you do something
that result in bodily injury or property damage to someone else.
ii.
iii.
Liability exposure
iv.
Burden of risk
Financial loss
Principle of Indemnity
Principle of Subrogation
Principle of Contribution
In marine insurance it is enough if the insurable interests exist only at the time of
occurrence of the loss.
In fire and general insurance it must be present at the time of taking policy and also at
the time of occurrence of loss.
The owner of the party is said to have insurable interest as long as he is the owner of the
it.
It is applicable to all contracts of insurance.
Principle of Utmost Good Faith
Principle of Utmost Good Faith is a very basic and first primary principle of insurance.
According to this principle, the insurance contract must be signed by both parties (i.e insurer and
insured) in an absolute good faith or belief or trust.
The person getting insured must willingly disclose and surrender to the insurer his complete true
information regarding the subject matter of insurance. The insurer's liability gets void (i.e legally
revoked or cancelled) if any facts, about the subject matter of insurance are either omitted,
hidden, falsified or presented in a wrong manner by the insured.
The principle of Utmost Good Faith applies to all types of insurance contracts.
Terminology of Utmost Good Faith
Both the parties i.e. the insurer or the insured should a good faith towards each other.
The insurer must provide the insurer complete, correct and clear information of subject
matter
The insurer must provide the insurer complete, correct and clear information regarding
terms and conditions of the contract.
This principle is applicable to all contracts of insurance i.e. life, fire and marine
insurance.
Principle of Indemnity
Indemnity means security, protection and compensation given against damage, loss or injury.
According to the principle of indemnity, an insurance contract is signed only for getting
protection against unpredicted financial losses arising due to future uncertainties. Insurance
contract is not made for making profit else its sole purpose is to give compensation in case of any
damage or loss.
In an insurance contract, the amount of compensations paid is in proportion to the incurred
losses. The amount of compensations is limited to the amount assured or the actual losses,
whichever is less. The compensation must not be less or more than the actual damage.
Compensation is not paid if the specified loss does not happen due to a particular reason during a
specific time period. Thus, insurance is only for giving protection against losses and not for
making profit.
However, in case of life insurance, the principle of indemnity does not apply because the value
of human life cannot be measured in terms of money.
Terminology of Indemnity
Indemnity means a guarantee or assurance to put the insured in the same position in
which he was immediately prior to the happening of the uncertain event. The insurer
undertakes to make good the loss
It is applicable to fire, marine and other general insurance.
Under this the insurer agrees to compensate the insured for the actual loss suffered.
Principle of Subrogation
Subrogation means substituting one creditor for another.
Principle of Subrogation is an extension and another corollary of the principle of indemnity. It
also applies to all contracts of indemnity.
According to the principle of subrogation, when the insured is compensated for the losses due to
damage to his insured property, then the ownership right of such property shifts to the insurer.
This principle is applicable only when the damaged property has any value after the event
causing the damage. The insurer can benefit out of subrogation rights only to the extent of the
amount he has paid to the insured as compensation.
For example, Mr. Jalal insures his house for RM 1 million. The house is totally destroyed by the
negligence of his neighbour Mr. Amir. The insurance company shall settle the claim of Mr. Jalal
for RM 1 million. At the same time, it can file a law suit against Mr. Amir for RM 1.2 million,
the market value of the house. If insurance company wins the case and collects RM 1.2 million
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from Mr. Amir, then the insurance company will retain RM 1 million (which it has already paid
to Mr. Jalal) plus other expenses such as court fees. The balance amount, if any will be given to
Mr. Jalal, the insured.
Terminology of Subrogation
As per this principle after the insured is compensated for the loss due to damage to
property insured, then the right of ownership of such property passes on to the insurer.
This principle is corollary of the principle of indemnity and is applicable to all contracts
of indemnity.
Principle of Contribution
Principle of Contribution is a corollary of the principle of indemnity. It applies to all contracts of
indemnity, if the insured has taken out more than one policy on the same subject matter.
According to this principle, the insured can claim the compensation only to the extent of actual
loss either from all insurers or from any one insurer. If one insurer pays full compensation then
that insurer can claim proportionate claim from the other insurers.
For example, Mr. John insures his property worth RM 100,000 with two insurers "Prudential
Insurance" for RM 90,000 and "Kurnia Insurance" for RM 60,000. John's actual property
destroyed is worth RM 60,000, then Mr. John can claim the full loss of RM 60,000 either from
Prudential Insurance or Kurnia Insurance, or he can claim RM 36,000 from Prudential and RM
24,000 from Kurnia Insurance.
So, if the insured claims full amount of compensation from one insurer then he cannot claim the
same compensation from other insurer and make a profit. Secondly, if one insurance company
pays the full compensation then it can recover the proportionate contribution from the other
insurance company
Terminology of Contribution
The principle is a corollary of the principle of indemnity.
It is applicable to all contracts of indemnity.
Under this principle the insured can claim the compensation only to the extent of actual
loss either from any one insurer or all the insurers.
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This plan also has the flexibility to allow you to add on optional benefits such as medical & health
optional benefits to enhance your protection.
Benefit
Crisis Cover Plus is a level term assurance. This plan will pay out a lump sum benefit upon the event of
death or total permanent disability or diagnosis of any of the 36 critical illnesses.You can choose to
enhance your protection by add on optional benefits.
Death benefit
2.
Total and permanent disability before 60 years old or age 60 next birthday
3.
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Crisis strikes from time to time. With increasing healthcare cost, even a minor incident can
change ones lifestyle. Introducing the Crisis Defender and Early Crisis Protector, riders designed to offer
financial support right from the early stages of critical illnesses. Crisis Defender is an optional benefit
that is designed to pay a lump sum benefit upon diagnosis of any of the 36 critical illnesses. Any claims
on this benefit will not affect the coverage of your basic plan. Early Crisis Protector is an optional benefit
under Crisis Defender that provides Early Stage Critical Illness Benefit and Special Benefit.
Benefit
Crisis Defender and Early Crisis Protector provide you:
1) The Shields that cover 85 illnesses, conditions and medical procedures in total.
With Crisis Defender and Early Crisis Protector, you are widely covered for a range of 46 Low and
Medium Severity illnesses/conditions/medical procedures, and 36 High Severity Critical Illnesses. The
benefits don't stop there! Early Crisis Protector also covers 3 specified diabetic complications.
2) Claim up to 6 times
You can claim up to 6 times under Crisis Defender and Early Crisis Protector.
Early Crisis Protector also provides additional one-off lump sum benefit for the following specified
diabetics complications:
a) Surgery for Type 2 Diabetic retinopathy;
b) Limb amputation due to Type 2 Diabetic Complications; or
c) Severe diabetic nephropathy resulting in kidney failure.
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However, for a subsequent claim of higher severity within the same category, we will pay you:
i. The difference between the relevant amount for the subsequent claim and the amount we paid to you
for the previous claim(s); or
ii. The reduced amount of benefit at the time the subsequent claim is made; whichever is lower.
For a subsequent claim from a different illness category, we shall pay you:
Note: We will pay your claims as long as you have survived 30 days after being diagnosed with the
illnesses or conditions covered under Crisis Defender and Early Crisis Protector.
Premium Information
The premium that you need to pay will depend on your age, gender and smoking status. You would have
to pay premiums throughout the duration of the benefits.
Premiums can be paid yearly, half-yearly, quarterly or monthly via Auto Debit, Credit Card, Cash or
Cheque.
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56.3 PRUhealth
PRUhealth is a regular premium medical rider plan that reimburses medical expenses incurred in
the event of hospitalisation. Not only does this plan reward policyholders with No Claims Bonus (NCB)
for those who do not make any claims for the year, you now have the option to choose the level of
deductible (the fixed amount you must pay out of the total medical fees, excluding cost of daily room &
board, for any one disability during a 90-day period) of RM3,000 or RM10,000 other than the default
coinsurance option.
PRUmultiple crisis cover -A plan that allows you to bounce back after a critical illness...again and
again.PRUmultiple crisis cover is a term plan that recognizes the need for enhanced protection and
peace of mind. This plan not only covers you against death, Total and Permanent Disability (TPD), it also
protects you against a wide range of critical illnesses and allows you to make MULTIPLE critical illness
and cancer claims.
But not only that, you may also add on supplementary benefits that will further enhance your
PRUmultiple crisis cover plan, which means you can customize this plan with features that would best
suit your needs
PRUcancer plan is a regular premium non-participating plan that provides coverage up to age
80. This plan provides comprehensive coverage against early stage cancer, cancer, as well as
compassionate benefit upon death. Upon maturity of the policy, a lump sum benefit will be payable.
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Enjoy greater flexibility with a medical card that lets you choose what you want.
PRUflexi med is a regular premium investment-linked medical rider that reimburses medical expenses
incurred in the event of hospitalization.
5.7 PRUlady
PRUlady is a regular premium non-participating life insurance plan that provides you with
protection against the financial impact arising from female illnesses, death or disability up to expiry age
of 70 years old. In addition, it also pays Life Change Benefit for various life events. Upon maturity, 100%
of total premiums that you have paid (excluding extra premium charged for sub-standard life and
service tax, if applicable) will be refunded to you. Furthermore, it protects all mothers-to-be against
pregnancy complications and their child against congenital anomalies.
Introducing, PRUvalue med, a medical plan that combines extraordinary values and savings. With
PRUvalue med, you will never have to choose between your health and finances as your healthcare
needs are what matters most to us.
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