The insurance industry in Malaysia is under the control of Bank Negara Malaysia (BNM) and Ministry of Finance (MOF). Insurance business in Malaysia is divided into two kinds, one is Conventional insurance and other is based on Islamic law known as Takaful insurance. The Securities Commission (SC) Malaysia is entrusted with the responsibility of regulating and developing the capital market and reporting it to MOF.
The general insurance association of Malaysia is the PIAM (Persatuan Insurans Am Malaysia).The Insurance act of 1996 was repealed by the Financial Service Act (FSA) of 2013.The FSA came into force on 30 June 2013 that consolidates the regulatory and supervisory framework for Malaysia’s financial industries (banking and insurance), payment systems and foreign exchange administrative matters.
Starting on 1st April 2015, Goods and Services Tax (GST) replaced the sales and service tax as a part of the Government’s tax reform program to enhance the capability, productiveness and transparency of tax administration and management. The GST stands at 6% from 2011 till now.
Detariffication is due to take place in Malaysia this year, and it will have a significant impact on the Insurance market as the competition is set to intensify, as insurance companies will be putting up a fight to capture market position.
The personal data protection Act, 2010 was passed by the Malaysian parliament in May 2010 and was implemented in the year November 15, 2013. It is subjected to all the personally identified data that is collected in respect to the commercial transaction. There are some groups of user who must be registered under the legislation; they are communications, banks and financial institutions, insurance companies, services and so on… NSURE’s top priority is to protect the data of clients as secured as possible.
ISM (Insurance Service Malaysia) NCD System is an industry wide system that enables insurers to confirm No Claims Discounts (NCD) online. Malaysian government permits FDI up to 70%.
NSURE is fully aware of all these regulations and comply with them thoroughly.
© 2016 KGISL Nsure.