Main Provisions of the Financial Services Act 2013

Question 1

What is the section and law on “Grant of License by Minister”?

Answer 1

Section 10:

‘authorized business’ includes insurance business, insurance broking, or financial advisory business

Question 2

What is the section and law on “Approval by the Central Bank”?

Answer 2

Section 11 (3):

insurance brokering or financial advisory business shall at all times have in force professional indemnity insurance or takaful of such amount as may be specified

Question 3

What is the section and law on “Licensed Insurer to Carry On Life or General Business”?

Answer 3

Section 16 (1):

licensed insurer other than a licensed professional reinsurer shall not carry on both life business and general business

Question 4

What is the section and law on “Registered Business”?

Answer 4

Section 17:

only a registered person can carry on registered business as a registered adjuster other than an advocate or solicitor, an aviation or maritime loss adjuster, or an employee of a licensed insurer or takaful operator who in the course of his employment acts or assists in adjusting insurance claims

Question 5

What is the section and law on “Financial Ombudsman Scheme”?

Answer 5

Section 126:

ensures fair, accessible, and effective way of handling complaints and resolution of disputes in connection with financial services or products

Question 6

What is the section and law on “Obtaining Insurance outside Malaysia”?

Answer 6

Section 127:

no person shall enter into or cause to be entered into a contract of general insurance or takaful outside Malaysia without the prior written approval of Bank Negara Malaysia

Question 7

What is the section and law on “Provisions Relating to Policies”?

Answer 7

Section 128:

Schedule 8 sets out the provisions relating to life insurance policies

Question 8

What is the section and law on “Pre-Contractual Duty of Disclosure and Representations & Remedies for Misrepresentation”?

Answer 8

Section 129:

Schedule 9 (Part 2) sets out the duty of disclosure for insurance contracts other than consumer insurance contracts.

Part 3 sets out on the non-contestability and remedies for misrepresentations

Question 9

What is the section and law on “Payment of Policy Money under Life and Personal Accident Policy”?

Answer 9

Section 130:

Schedule 10 sets out the provisions relating to the payment of policy money upon the death of a policy owner under a life policy including a life policy under section 23 of the Civil Law Act 1956 and a personal accident policy effected by him upon his own life

Question 10

What is the section and law on “Savings & Traditional Provisions”?

Answer 10

Section 275:

(a) subsections 147 (4) & (5) and sections 150 & 151 (b) sections 144 & 224 of the repealed Insurance Act 1996 shall continue to remain in full force until such date to be appointed for the coming into operation of section 129 and schedule 9 of the FSA

Question 11

What is the section and law on “Conversion to Single Insurance Business”?

Answer 11

Section 276:

composite insurers shall comply with subsection 16(1) within five years, or such longer period as may be specified by the Minister, of the appointed date of the law