Client charter

Pillar 2	KNOW YOUR CLIENTS
Description	To understand a client profile adequately which enables the insurers / takaful operators to: Know and anticipate the client’s needs and preference. Ask for requisite information and documents to best advise the client. Offer suitable products and services.
Expected Outcome	BUILD TRUST
Service Level Target	90% of clients are served with suitable products and services which fit their needs and wants. Minimal complaints (ratio of 5% of total complaints) from clients are on not understanding what was offered and/or not having the suitable products and services..

We will strive to help clients find the right product to suit their needs.

1. Knowledgeable and ethical staff and agents are available to serve clients.

2. Training:

• Ensure employees and intermediaries are properly trained on products and services offered.
• Training must be provided any time a new product is launched and regularly as refresher courses on existing products.

3. Understanding Clients’ Needs.

• In order to understand the clients’ profile adequately, insurers and takaful operators including their agents shall:
• Listen attentively to the clients.
• Acknowledge and properly understand the clients’ needs and preferences.
• Ask for requisite information and documents to advise the clients accordingly and in accordance with the Industry’s Code of Practice on the Personal Data Protection Act 2010.
• Offer options of suitable products and services to meet the clients’ needs and wants.

4. Any options provided to clients shall be explained and on an “opt-in-basis”, e.g. riders, sharing/using client information for marketing and research purposes.

Note: Handling of client information is governed by Bank Negara Malaysia’s Policy Document on Management of Client Information and Permitted Disclosures and insurers/takaful operators shall operate accordingly.

Pillar 3	TIMELY, TRANSPARENT & EFFICIENT SERVICE
Description	Deliver a seamless service wherein clients are aware of: Insurers’ / Takaful operators’ responsibilities towards clients. Expected service standard and time taken to deliver these services, i.e. time taken to answer enquiries / resolve complaints. Where and how to obtain information required i.e. product features and costs.
Expected Outcome	CLIENT SATISFACTION
Service Level Target	80% of clients are being served within the expected service level and timelines. 100% of clients are issued with policy documents in a timely manner. Declining complaints ratio.

We will set clear responsibilities towards clients and uphold it.

A standard commitment on clear responsibilities to be a mandatory write up on all client charters should cover the following guiding principles:

1. A clear and concise objective of the Charter.
2. Mission
3. Values to be provided to the client, e.g. fairness, transparency, integrity, ethics, professionalism, timeliness.
4. Efficient/Effective communication channels.

 

We will set clear expectation on time taken for various services.

To include a clear expectation on time taken for various services:-

1. Delivery of Services:-
   • Information on turnaround time on delivery of services must be made available in the Clients Charter through various channels. (head offices/branches/brochures/call center/website/social media).
2. Standards to be adopted:-
   Serve Walk-in Client Promptly:
   • Client Waiting Time: Within 10 minutes.

 

We will ensure efficient policy servicing and providing relevant documentation in a timely manner.

1. Clients shall be informed of each step and documentation required to alter, renew, surrender or cancel a policy, e.g. what happens when there are changes to the policy, notice on renewal, etc. as well as consequence arising from any of these actions.

2. Clients are to be reminded in the renewal notice to inform the insurance company of any changes in the risk before renewal.

3. The standard operating procedure on dealings with clients must be clearly complied with.
 

We will ensure efficient policy servicing and provide relevant documentation in a timely manner (Life & Health including Takaful)

1. Policy Account Turnaround Time (from receipt of full documentation, information and payment of premium):

a) Policy Issuance (upon acceptance in the policy system) New and Existing Client:-

• Standard cases - within 5 working days
• Additional information required/pre-existing medical condition/complex cases - within 10 working days

b) Change of policy account details (endorsement):

• Policy Changes (Non-financial) : within 3 working days
• Policy Changes (Financial) :
  • Standard cases - within 5 working days
  • Non-Standard cases - within 10 working days

c) Reinstatement: within 10 working days (with payment & complete documentation.)

2. Renewal notice issuance:

• For policy with guaranteed renewal, premium due notice will be issued not less than 30 calendar days before the next premium due date.
• Notification of Revised Premium to renewable basic term policy/term rider will be issued not less than 30 calendar days before the expiry of existing policy/rider.

3. Cancellation/surrendering of policy: 10 working days upon receipt of full documents - to also include processing of refund premium.

4. Issuance of medical/hospitalization card for individuals - Within same business day of policy issuance.

Note: The timelines above do not take into account onboarding process - insurers/takaful operators have their own onboarding process/introduction to its products and services.
 

We will ensure efficient policy servicing and provide relevant documentation in a timely manner (General)

1. Policy Issuance (upon acceptance in the policy system).

• Life Insurance - within 10 working days (applicable for individuals only, not applicable to group)

2. Change of policy details/reissuance upon lapse/endorsement (upon acceptance in the policy system):

• Life Insurance - within 5 working days

3. Renewal notice issuance: 30 calendar days before expiry of existing policy.

4. Cancellation/surrendering of policy (including refund of premium).

• Non-Motor - within 7 working days

Note: The timelines above do not take into account onboarding process - insurers/takaful operators have their own onboarding process/introduction to its products and services.
 

We will be open and transparent in our dealings

The following information shall be easily accessible and made available through the various channels of communication such as branches/brochures/call centers/website:

1. Product related details, i.e. product features, product disclosure sheets, terms and conditions, key facts and exclusions will be shared at the point of sale.

2. Fees, charges (other than premiums), and interest (if any) as well as obligations in the use of a product or service (e.g. when premium needs to be paid and explaining payment before cover warranty).

3. Anti-fraud statement and key points to remember, i.e. confidentiality of client information, free look period of not less than 15 calendar days to reject or accept applications.

4. All the above information shall be explained and stated using simple words and in an easy to understand manner.
 

We will follow through and provide the requisite answers/updates to clients’ queries & complaints promptly.

1. Phone.

• Where no follow up is required - Immediate such as first call resolution.
• Where follow up is required - Within 3 working days from the date of the first call.

2. Written (Email, fax, written letter & social media).

• For Email/Social media:
  • Provide acknowledgement response within 1 calendar day.
  • Acknowledgement to include expected timeline and any other relevant information.
  • Non-complex enquiry - respond within 3 working days from date of receipt.
• For letter or fax
  • Enquiries will be replied within 3 working days from the date of receipt on non-complex enquiries.

3. Counter/Branches.

• Where no follow up is required, insurers/takaful operators will endeavor to provide first touch point resolution immediately.
• Where follow-up is required - within 5 working days from the date of the first visit.

Note: Where enquiry is complex, insurers will provide a reasonable timeframe and keep the client updated accordingly.

We will ensure consistent and thorough complaints handling.​

1. Clients shall be informed of the various options for submitting a complaint through available channels, depending on the insurers channel presence and whichever applicable, i.e. provide complaints unit contact details (telephone number and address), website, social media, etc.

2. A verification process has to be performed on the policyholders/participants.

3. Communicate clearly on the issue and gather adequate information for an informed resolution.

4. Address the issue in an equitable, objective and timely manner by informing the complainants on insurers’/takaful operators’ decision no later than 14 calendar days from the date of the receipt of the complaints.

5. If the case is complicated or requires further investigation, insurers/takaful operators shall inform the complainant accordingly and update progress every 14 calendar days. If not resolved, to update within another 14 calendar days. Thereafter, after every 30 calendar days.

6. Keep the complainants updated if unable to address issues within the stipulated timeframe.

7. Refer the complainants to the next level of escalation if the resolutions are not to the satisfaction of the complainants. Contact details of Bank Negara Malaysia LINK, BNMTELELINK and Ombudsman of Financial Services must be clearly provided.

Note: Complaints handling and timelines is governed by Bank Negara Malaysia (BNM)’s Guidelines on Complaints Handling and insurers shall operate accordingly.

Pillar 4	FAIR, TIMELY & TRANSPARENT CLAIMS SETTLEMENT PROCESS
Description	Deliver a seamless claims processing and settlement experience wherein clients are aware of: Procedures, documentation and steps including various options (if any) for first notification of loss in an event of a claim. Expected service standard for claims processing and specific time taken for each step within the claims processing stages. Various redress mechanisms for unsatisfactory claims payment.
Expected Outcome	PROVIDE PEACE OF MIND TO CLIENTS
Service Level Target	75% of the clients are satisfied with the claims decisions and processes. Declining complaints ratio over the years from clients on claims settlement and processes. 100% of legitimate claims are paid accordingly.

We will set clear timeline for claims settlement process and strive to settle claims within these prescribed timeline and in a transparent manner.

To set clear timeline for claims settlement process and strive to settle claims within these prescribed timelines and in a transparent manner by adopting the following procedures:-

1. Clients will be informed of the estimated time taken for claims settlement process and expected service standard. This information shall be made available through various channels (i.e. branches/brochures/call centers/website).

2. Clients shall be informed on the acknowledgment of their claim within 7 working days from receipt of claims notification.

3. All claims notifications through agents must reach the insurers within 3 working days, except for crime related claims which should be notified within 24 hours from time of loss.

4. If documentation/information is incomplete, clients shall be informed within 14 working days from acknowledgement of the claim by the Claims Department.

5. To state key claims procedures and assign timelines to it, i.e. appointment of adjuster, claims assessment, etc.

6. Clients will be updated on the progress/decision every 14 working days.

7. In the event of a catastrophe/disaster, e.g. large number of claims may be received, as such meeting timelines stipulated may not be possible, the insurers will strive to update every 20 working days on the progress.
 

We will inform client of the next level of escalation if the claims settlement / rejection is not to his/her satisfaction

To keep the client informed of the next level of escalation if the claims settlement/repudiation is not to his/her satisfaction.

1. Clients shall be provided with available channels to appeal on a decision/raise disputes. (i.e. branch/brochures/call center/website).

2. Any letter of rejection/repudiation of any element of a claim and dispute on quantum which is within the purview of the Financial Ombudsman Scheme must contain the following statement prominently:-

If you are not satisfied with our response or decision, and if your complaint involves a sum of up to RM250,000, you may lodge your dispute to the Ombudsman for Financial Services (OFS), within 6 months from the date of our final decision at the following address:

Ombudsman for Financial Services
(Formerly known as Financial Mediation Bureau)
Level 14, Main Block, Menara Takaful Malaysia
No. 4 Jalan Sultan Sulaiman
50000 Kuala Lumpur
Tel: +603 2272 2811
Fax: +603 2272 1577
Email: enquiry@ofs.org.my
Link: http://www.ofs.org.my/en/feedback.html
Website: www.ofs.org.my
Link: http://www.ofs.org.my/en/

Or

If your complaint does not fall within the purview of the OFS or for claims amount above RM250,000, you may refer your complaint to the Laman Informasi Nasihat dan Khidmat (LINK) of Bank Negara Malaysia (BNM) at the following address:

Laman Informasi Nasihat dan Khidmat (LINK)
Bank Negara Malaysia
P.O. Box 10922
50929 Kuala Lumpur
Tel: 1-300-88-5465 (Overseas: +603 2174 1717)
Fax: +603 2174 1515
Email: bnmtelelink@bnm.gov.my

Note: for the policy owners who made a claim/report involving claims settlement/rejection which is not to his/her satisfaction