ABOUT
INSURANCE ..... |
gives
you a quick guide to the history, nature, legislation, functions and
organisations of insurance in Malaysia
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Insurance
companies |
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There
are two methods of classifying insurance companies, i.e.
- on
the nature of the business transacted - Insurance
companies in Malaysia are either Life Insurance Companies or General
Insurance Companies. Life Insurance Companies transact all types of
policies covering all aspects of life, personal accident and, to a
minor extent, health insurance. General Insurance Companies, on the
other hand, deal with all non-life insurances such as fire
protection policies, theft protection policies, motor insurance
policies, etc. Some companies transact both Life and General
insurance business. Such companies are called Composite Companies.
- on
the nature of the ownership of the company - The
insurance companies are generally owned by shareholders who
contribute to the share capital of the company by purchasing the
shares of the company. Such companies are called Proprietary
Companies. The proprietary companies are limited liability companies
where the liability of the shareholders is limited to the amount of
shares they purchased. Sometimes the companies are owned solely by
the policyholders and there are no shareholders. Such companies are
call Mutual Companies.
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Establishing an Insurance Company
As stated in the Insurance Act, 1963,
insurance business in Malaysia can be carried out only:-
- "by a company as defined in the
Companies Act 1965 or a company incorporated outside Malaysia which
has an established place of business in Malaysia;
- by a society registered under the
Co-operative Societies Ordinance; or
- by an unincorporated company
established in the United Kingdom before the year 1862 which has
been carrying on business as insurer in Malaysia since or before 21
January 1963 and has an established place of business in
Malaysia."
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