4 theSun | THURSDAY APRIL 2 2009

news without borders

RM130m outflow in insurance premiums via EWP

by Karen Arukesamy
newsdesk@thesundaily.com
PETALING JAYA: More than
RM130 million in insurance pre-
miums flows out of the country
annually under the Extended
Warranty Programme (EWP) for
Malaysian-made cars.
According to sources, Allianz
General Insurance Company (M)
Berhad, a locally registered compa-
ny, is the current lead EWP insurer
of Proton and Perodua cars.
The company has arranged for
all co-insurers to cede 90% of risk
to American-owned reinsurance
company Virginia Surety Ltd.
“Virginia Surety is a reinsurance
company writing only extended
warranty insurance registered in
Labuan and premiums earned
here are being remitted back to
the States,” a source told theSun
recently.
The source said a check with
senior managers and directors of
insurance companies showed that
the EWP did not require overseas
reinsurance as there is ample local
expertise and acceptability in this
area.
The source said that just like
all Labuan-registered companies,
Allianz marketing/sales offices are
based in Kuala Lumpur.
“With a big multinational com-
pany like Allianz doing this busi-
ness, the reinsurance percentage
has increased to 90%. Does this
make sense? What happened to
local retention?” an industry
source asked.
“The estimated yearly insur-
ance premium for EWP from Pro-
ton and Perodua amounts to more
than RM130 million. Does it make
sense to allow this outflow during
the current financial meltdown?”
Bank Negara could not be
reached for comment on the mat-
ter.
A detailed chart provided by the
industry source showed that Pro-
ton’s share of the EWP premium
is RM65 million annually, and
Perodua at least RM70 million.
“With immediate effect from
2009, Allianz Insurance has taken
over a major percentage of the
insurance share. They have
become the lead insurer for the
EWP,” the source said, indicating
a near monopoly in the business.
Allianz Insurance chief exec-
utive officer Ng Hang Ming, in an
email interview yesterday, said:
“We are neither divulging informa-
tion on any customer relationship,
nor on reinsurance and co-insur-
ance arrangements.
“We can say, however, that all
our relationships are strictly in
line with the legal framework in
Malaysia in general, and Bank
Negara Malaysia’s regulations and
risk management framework in
particular.”
“Our company’s main focus
this year remains the customer,
and we are working towards
delivering excellence in all prod-
ucts, operations, processes and
behaviours.
“This is done through the One
Allianz initiative, which will ena-
ble us to gear the operations of
all our group companies towards
servicing our customers to their
satisfaction,” Ng said.
“Our goal is to increase the
number of new and retained cus-
tomers because of our focus on
customer service excellence.”
He said that as part of an inter-
national group, Allianz Malaysia
has access to best practices in
underwriting, claims, investment,
IT and relevant operational proc-
esses.

Hemananthani Sivanandam at the Dewan Negara yesterday

Tailor-made 49% jump in dengue cases

future for THIRTY-FIVE people have died
from dengue fever this year, Deputy
“The level of awareness of these
diseases among Malaysians is high.
munication for Behavioural Impact
(Combi) to encourage public partici-

prisoner Mamat Health Minister Datuk Dr Abdul Latiff

KOTA BARU: Mamat (not his real name), who will
be released from the Pengkalan Chepa prison here in
22 days, has a more or less tailor-made future ahead
of him.
The 34-year-old has been presented with a sewing
machine to use the skill he developed during the six
years he has been in prison, in addition to his good
conduct.
Pengkalan Chepa prison director Mohd Rosidek
Musa said the Kelantan Justices of the Peace Council
had donated the machine to Mamat.
“This will enable Mamat to set up a tailor shop
to practise the skill he acquired at workshops he
attended in prison,” he told reporters after Mamat
received the machine from Datin Rapiah Mat Zin,
who represented the council.
Mamat said he was grateful for the gift which
would enable him to start life anew.
The sixth of 13 siblings learned to sew three
months after he was sent to prison on April 28, 2003,
and has sewn a variety of clothing including uniforms
according to customer needs. – Bernama
Ahmad said.
The figure, as of March 21, regis-
ters a 49% jump from the correspond-
ing period last year, he said.
Abdul Latiff said 12,933 dengue
cases were reported this year com-
pared with 8,666 over the same
period last year, 62% of which were
in the Klang Valley and Selangor.
A total of 1,071 cases of chikun-
gunya fever were reported as of
March 21, but the number has eased,
with between 20 and 40 cases regis-
tered weekly.
Conficker
worm digs
in around
the world No special IPO for minorities
pg 9 THE government has no plan to initiate
special Initial Public Offerings (IPO) for
minority groups, Deputy Finance Minis-
ter Datuk Kong Cho Ha said.
Replying to a question from Datuk
Daljit Singh Dalliwat, he said the gov-
ernment was, through various mecha-
nisms, constantly trying to improve the
level of competitiveness among minority
groups.
“This includes fair educational
opportunities, unit trusts, skills training
But when it comes to compliance
with preventive measures, people
are still neglectful,” Abdul Latiff said.
“According to the National Health
Morbidity Survey III, 89% of Malay-
sians know about dengue and how it
spreads, while 79% can identify aedes
breeding grounds in their homes.
“However, it is disappointing that
only 14% take the initiative to destroy
mosquito breeding grounds,” he said
in reply to a question from Datuk Yip
Kum Fook.
Abdul Latiff said the ministry had
introduced programmes such as Com-
and entrepreneurship development.
These programmes will help everyone
including minorities improve their stand-
ard of living,” Kong said.
He said these initiatives would
increase opportunities to enable minor-
ity groups to participate in the develop-
ment of the economy as well as own
equity in the corporate sector.
To a supplementary question from
Ahamat @ Ahamad Yusopon on whether
there were still specific IPO allocations
pation in the fight against dengue.
“To date, we have had 11,892 vol-
unteers at 585 locations to implement
Combi. The number of dengue cases
in some 84% of locations where the
programme was implemented has
reduced significantly.”
To Heng Seai Kie’s supplementary
question on whether allegations that
the dengue and chikungunya situa-
tions in areas with PKR representa-
tives were more serious, he replied:
“That’s not true. Mosquitoes don’t
choose who they want to bite and
from which (political) party.”
for bumiputras and why listed IPO share
prices were higher than what was
offered, Kong said companies that have
IPOs still have specific allocations for
bumiputras managed by the Interna-
tional Trade and Industry Ministry.
He said market forces, supply
and demand determine the prices of
IPO shares. Where previously, IPO
shares were not listed in Bursa Mal-
aysia, prices were determined by the
appraiser.

On March 12, the department seized 612 taxi permits may

briefs
Perak Customs seizes
RM5.5m in contraband
IPOH: The Perak Customs Department
seized contraband worth RM1.7 million
with RM3.8 million in unpaid duties and
arrested two drivers in the first three
months of the year, its director Dzulkur-
nain Abdul Rahman said.
He said the seizures included smug-
gled firecrackers and fireworks worth
RM94,000 with RM61,000 in unpaid
duties recovered from a lorry yesterday.
The driver, who abandoned the lorry
at the exit road after the south-bound
Slim River Toll Plaza, escaped with a ve-
hicle driven by an accomplice, Dzulkur-
nain told reporters here yesterday.
Last Wednesday, he said the depart-
ment detained the drivers of three
cars for smuggling 24,000 packets of
kretek cigarettes worth RM40,000 with
RM138,000 in unpaid duties in Teluk Intan
and Sitiawan. The drivers fled the scene.
alcoholic drinks and cigarettes worth
RM162,000 with RM385,500 in unpaid
duties in Kampung Kepayang, Simpang
Pulai near here and arrested two peo-
ple aged 30 and 40. – Bernama
RM13.63m for Gaza
AS OF March 16, the Gaza humani-
tarian fund has received RM13.63
million from the public, Deputy
Foreign Minister Datuk Abdul
Rahim Bakri said in a reply to Datuk
Wira Syed Ali Tan Sri Syed Abbas
Alhabshee.
He said that when the offensive
on Gaza had begun, the government
had immediately channelled US$1
million (RM3.7 million) through
Mercy Malaysia.
On March 19, RM10.3 million was
channelled to 13 non-governmen-
tal organisations in Malaysia and
RM250,000 to Unicef for the imple-
mentation of humanitarian projects
“The aid distributed to Unicef is
for the continuity and development
of the Palestinian children,” Abdul
Rahim said.
be revoked
PUTRAJAYA: The Commercial Vehicle
Licensing Board (CVLB) will revoke or
suspend 612 taxi permits held by indi-
viduals or companies for committing
various public transport offences.
Entrepreneur and Cooperatives
Development Minister Datuk Noh Omar
said CVLB is waiting for the list of errant
permit holders from the Road Transport
Department (RTD) before issuing show-
cause letters .
“We will give them 14 days to reply
and if found guilty, the permits will be
revoked or suspended without warn-
ing,” he told reporters after witness-
ing the signing of a memorandum of
agreement (MOA) between Koperasi
Integrasi Nasional Selangor Berhad
(Kinseb) and the Johor Biotechnology
and Biodiversity Corporation (J-Biotech)
yesterday.
RTD enforcement director Salim
Parlan said recently, an operation in
the Klang Valley found that 612 of 627
taxis checked had committed various
offences causing much inconvenience
to passengers. – Bernama