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Tips on Financial Issues

Tips on Financial Issues


Read the terms and conditions of a contract carefully
You have to read and understand the terms and conditions of an agreement/contract for any loan or investment related product prior to signing any related documents.

Responsibilities of a guarantor
You have to understand the responsibilities and obligations of a guarantor. Guarantors are legally bound to make repayment if the borrower fails to settle the loan.

Disclosure of financial information
Do not disclose your financial information such as account number, credit card number, password and other personal particulars to third parties either via telephone, e-mails or any links in websites.

Transactions at ATM machines
Do not allow third parties to make transactions at ATM machines on your behalf, even to those whom you know such as your spouse.

Credit card transactions
Credit cards should be used as a payment instrument and utilisation should be within your means. Please verify the amount swiped after each credit card transaction and make sure the card returned belongs to you. ?

Submission of documents
Be cautious before submitting photocopies of your identification card or passport to third parties, other than to financial institutions or lawyers acting on your behalf.

Internet banking facilities
Do not be deceived into opening an internet banking account in order to win prizes or inheritance from an unknown party. This could be a scam! If you have already done so, contact and report to your bank and to the police immediately for their further action, also keep Bank Negara Malaysia informed.

Memory cache function
Do make sure that you have log-out properly after using the internet banking and clear the memory cache after completing the transactions.




Read the policy contract carefully
You have to read and understand the terms and conditions of the policy upon receiving the policy contract from insurance companies. You are given 15 days from the date of receipt to scrutinise contents of the policy. Use this opportunity to validate the information and evaluate whether the policy suits your requirement. Understand the limitations or the exemption clauses. Please contact the insurance company or its agents for further explanation, if necessary.

Importance of disclosure
You must disclose all material facts in your application form completely. If your agent fills up the application form on your behalf, please read and understand the requirements in the form prior to signing the form. Failure to do so could cause your insurance policy to be terminated or the insurance company might repudiate your claims.??

Purchase of insurance policy
You can purchase insurance policy either directly from the insurance company, through authorised agent, or banks/financial institutions which has bancassurance arrangement with insurance companies. If you are buying the insurance policy from an agent, please ensure that he/she is an authorised agent of the insurance company. If you have doubt, request for proof such as registration/authorisation card of the agent or contact the insurance company directly. All authorised agents are registered under Persatuan Insurans Am Malaysia (PIAM) or Persatuan Insurans Hayat Malaysia (LIAM).

Premium payment
You have the choice to either pay the premium directly to the insurance company or through agents. You have to ensure payment is made under the insurance company?s name and also ensure that you receive the original receipt from the insurance company. Avoid making cash payment to the agents, if possible.




Investment and deposit taking
If you want to invest, please ensure the company has a VALID licence from the Authorities such as Bank Negara Malaysia (BNM), Securities Commission (SC) and Kementerian Perdagangan Dalam Negeri, Koperasi dan Kepenggunaan (KPDNKK). You can contact BNM at 1-300-88-5465, SC (03-62048999/03-62048777) and KPDNKK (1-800-886-800) to verify the status of the companies.

High investment returns
Be cautious of any form of marketing strategy which promises high returns or profits without risk. High returns come with high risks. Make sure you gather additional information about the company.

SMS or prank calls
If you receive any SMS or call through your mobile phone, promising huge cash rewards with the condition that you are required to reply to the SMS or return the call, you have to substantiate first by checking with the Authority such as Bank Negara Malaysia. Always be cautious of such calls.