MSIG Malaysia

As a car owner, it's always wise to have as much protection as possible. Especially when life may have other plans for you and your car. Situation could arise that may result in the loss or damage to your Smart Car Key, damage from flood, storm or other convulsions of nature, and even accidents involving you and your passengers. 

Therefore, you should consider addtional coverage to your existing Motor Insurance to help you during unexpected times. 

  • Smart Key Shield (Non-Tariff)*
    • To cover the loss or damage of your Smart Car Key. Click here to watch the video.
  • Special Perils - Flood, Storm, Landslide, Landslip or Subsidence cover (Tariff)*
    • To protect your vehicle from flood and nature-related damages. Click here to watch the video.  
  • Driver's Personal Accident Insurance (Non-Tariff)*
    • To protect the driver and passengers traveling in your vehicle. Click here to watch the video.  

*For Comprehensive Private Car Only. 

Nomination is important to ensure that your loved ones get the protection that you intended.

To assist you in understanding ‘Nomination’, we have come up with simple FAQs below. 

1.    Why do I have to nominate?

Nomination is important to ensure that your loved ones will receive the protection as intended by you and that policy moneys may be paid out by insurers without any delay.  Where no nomination is made, the policy moneys will be paid out to your lawful executor (if you have made a Will) or your lawful administrator (if no Will has been made) – this process will take a while.

*If there is no lawful executor or administrator, then the policy moneys will be paid out to the rightful persons in accordance with applicable distribution laws.

2.    Who can I nominate?

You can nominate any individual(s) you want.  HOWEVER, not all nominees will receive the policy moneys beneficially or for their own use.  Depending on your marital status and who you nominate, nominations may produce unexpected results for the nominee(s).  Likewise, nominations by a Muslim policy owner and non-Muslim policy owner will have different consequences.

How so?

Nominations made by a non-Muslim policy owner will create either (i) a trust policy in favour of the nominee(s) or (ii) a non-trust policy.

To ensure that your nominee(s) receive the policy moneys as intended, you need to ensure that a trust policy is created in favour of your nominee(s).

3.    How do you create a trust policy?

Trust policy will be created:

(a)   if the nominee is your spouse or child; or

(b)  if the nominee is your parent (provided that there is no living spouse or child at the time you make the nomination).

4.    What if I nominate someone else as my nominee(s)?

In such as case, you are creating a non-trust policy.  Here, your nominee will only receive the policy moneys as executor and distribute the policy moneys in accordance with your Will or where there is no Will, in accordance with applicable distribution laws.  If you intend for these nominee(s) to receive the policy moneys beneficially and not as executor, you will need to assign the policy benefits to them.

In brief, if you nominate people other than your spouse, children or parents, make sure to assign the policy benefits to them to ensure that they receive the policy moneys for their own use.  Please contact MSIG if you require more information on this.

5.    What about Muslim policy owner?

Nominee(s) irrespective of the relationship with the policy owner can only receive the policy moneys as executor and the policy moneys must be distributed in accordance with Islamic laws.

6.    I did not make any nomination and Will.  How will the policy moneys be distributed?

The policy moneys as well as your other assets will be distributed in accordance with applicable distribution laws.

For West Malaysia and Sarawak, the Distribution Act 1958 applies, where the policy moneys and assets will be divided between your surviving spouse, children and parent(s) in certain proportions.

The Distribution Act 1958 is however not applicable to Muslims in West Malaysia and natives in Sarawak.  For Sabah, policy moneys and assets will be distributed in accordance with the Intestate Succession Ordinance 1960.

7.    How do I make a nomination?

It is easy to make a nomination.  You can download the PA Insurance Nomination Form provided in this website or you may contact us and request for a copy.  Complete and return the original PA Insurance Nomination Form to MSIG for our further action  – you may wish to refer to the sample completed form for reference. 

Please make sure that the form is duly signed and witnessed by someone who is 18 years old and above, of sound mind and not a named nominee, failing which the nomination may be deemed invalid.

*The FAQs are provided for general information only. For detailed provisions on nomination, please refer to Schedule 10 of Financial Services Act 2013. 

To download a copy of the Personal Accident Insurance Nomination Form, please click on the link below.

8.    Can I being the insured revoke the nomination made earlier in my trust policy?

Yes, you can revoke the nomination under your trust policy but under the law you must obtain the written consent of the trustee before the revocation can be valid. (Refer to explanation in question 3 above). Hence, if you wish to revoke the nomination, you may download the Consent Form provided by us through the link below for completion. After the submission of the completed Consent Form and new Nomination Form to us, we will pass an endorsement for a change of nominee to your trust policy.

Specimen Personal Accident Insurance Nomination Form
Personal Accident Insurance Nomination Form
Consent Form for Revocation of Nomination

1. Do I have to pay GST on my Motor Insurance?

GST on motor insurance premium will be charged at 6% from 1 April 2015.

2. Period of Insurance for my Motor Policy is from 30 March 2015 to 29 March 2016. Will the Insurance Company charge me for GST for the period from 1 April 2015 to 29 March 2016?Especially since the Insurance Company has included a notice on GST on my policy.

For Motor Insurance this depends :

  1. If you pay your premium before 1 April 2015, you do not need to pay GST from 1 April 2015 to 29 March 2016.
  2. If you pay your premium from 1 April 2015 onwards (irrespective of period of insurance) GST will be charged.

Please note that at this juncture, Customs has not officially advised of this relief from GST. To be on the safe side, it would be better to pay your premium before 1 April 2015.

3. Then can I extend my policy perpetually so that I don’t have to pay GST?

GST will be charged for extensions after 1st April 2015.Anyway, it is not advisable since your Motor Policy should be aligned with your Road Tax Expiry.

4. What happens if I decide to increase my policy coverage mid term?

If the effective date of the increase in policy coverage is from 1 April 2015, GST will be charged on the additional premium.

5. If I sell my car and cancel the motor insurance policy, will MSIG refund my premium together with the GST?

Yes, only if GST has been charged and you have paid the GST amount, we will refund the premium and GST. No GST refund, if there is no GST charged with the initial premium.

6. If I transfer my NCD from Car Number ABC 1234 to Car Number XYZ 789, what happens to the GST? 

GST will be charged accordingly on Car Number ABC 1234 and XYZ 789.

7. Do I pay GST on premium for the extension to Kalimantan and Thailand cover?

Yes. 

8. If I reinstate my windscreen cover on or after 1 April 2015, do I have to pay GST on the premium?

Yes.

9. Is GST chargeable on additional perils for example flood?

Yes.

10. Do I pay GST if I purchase my motor insurance from a non-GST registered agent?

GST is chargeable irrespective of the GST status of the Agent.

GST is charged on the motor insurance and collected by the Insurance Company on behalf of Customs.

11. Life insurance is exempted from GST. Do I pay GST if I purchase my motor insurance via a life agent?

Motor insurance is a general insurance product. Hence you will need to pay GST on your motor insurance premium.

12. What does MSIG do with the GST I’ve paid?

MSIG collects GST on behalf of Customs Department & pays to Customs on monthly basis.

13. What about Stamp Duty?

MSIG collects Stamp Duty on behalf Inland Revenue Department & pays Inland Revenue. 

14. Is there any GST on the Stamp Duty?

No. Stamp Duty is a government tax and is not subject to GST.

15. When I renew my car insurance, the sum insured should include or exclude GST?

It should include GST.

1. If I have paid GST charged on the medical expenses, can I claimed back from MSIG?

  • For individual, GST will be reimbursed accordingly.
  • For corporate, it will depend on the corporate’s GST registration status. If GST registered, the approval excludes GST and vice versa.

2. If the insured person met an accident and passed away, what is the GST impact on the claim settlement?

There is no impact on GST as it will be settled as per the policy term i.e. sum insured.

3. If the insured person met an accident and suffered permanent disablement, what is the GST impact on the claim settlement?

There is no impact on GST as it will be settled as per the policy term i.e. sum insured.

4. If I’m GST registered, why will MSIG pay the claims exclusive of GST?

Generally, as a GST registered person, you will be entitled to claim any GST incurred on the claim amount. If this is the case, the GST does not form part of your loss amount.

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General Notes:

GST is law and therefore forms part of the terms & conditions of the policy.  Failure to pay GST means MSIG reserves the right to cancel or void the policy

Disclaimer:

The FAQs provided herein is for general information only and not intended to constitute advice on specific matter relating to GST.  Please consult your tax agent on the application of GST to your particular circumstances.

Motor Assist

Our dedicated Customer Service Officers and staff will be happy to assist with your queries.