One of the problems with the critical illness policy is that it is being sold by agents who give policyholders the wrong impression that the coverage is wider than it really is. (A critical illness policy is one that pays out a lump sum upon confirmation that the policyholder has been diagnosed with one of the illnesses or conditions covered under the policy)
For example, the agent assures the policyholder that cancer is one of the critical illness covered but does not explain that it has to be the “right “cancer.
The Government has not accepted CAP’s proposal for a No-Fault Liability (NFL) scheme for road accident victims and has instead decided to maintain the present system with some changes.
The new third party motor cover which will be implemented early next year, is also a fault-based liability (FBL) system. Accident victims will lose out with the rejection of the NFL scheme.
In August 2007, the Attorney General’s Chambers issued a Preliminary Issue paper proposing that a No-Fault Liability Scheme (NFL) be introduced. There were intensive discussions with all interested parties including BNM on the need for the NFL scheme.
Very little is known about the proposed scheme by BNM, but from various reports in the media, it appears that :