Unlike Some Leeway For Road Tax, You Must Have A Valid Car Insurance During The MCO
- By CompareHero.my
- October 11, 2021
With the number of Covid-19 cases in Malaysia plummeting over the last few weeks, most people have been going back to work as usual. More people on the road means more cars and heavier traffic jams.
Related: 5 Ways Malaysians Can Save On Their Monthly Petrol Bills
Now, during the MCO, as our main task was to stay home and be safe, the government extended the deadline for road users to renew their road tax and driving license. At present, you have up until 31st December 2021 to do this. Simply put, if you drive around with an expired road tax or driving license now, you won’t get in trouble with the traffic police.
However, if you are able to renew your documents ASAP please do so as you wouldn’t want to be rushing on the last day of the year to get this sorted.
You can’t have an expired car insurance
Speaking of documents, road users in Malaysia need to carry 3 important documents with them:
- Road tax
- Driver’s license
- Vehicle insurance
As mentioned above, you can renew your road tax and driver’s license later this year, but this leeway doesn’t apply to the insurance for your vehicle.
Minister of Transportation, Datuk Seri Dr Wee Ka Siong has said:
“Motorists with expired road tax must, however, ensure that the insurance for their vehicles are valid.
“They must display their insurance e-cover note for authorities to check,”
-Quoted by The Star, 3rd September 2021
In case you didn’t already know, it’s an offence not to renew your vehicle insurance once it expires. Section 58 of the Road Transport Act 1987 says:
Any person in charge of a motor vehicle on a road shall, on being so required by any police officer, any traffic warden or any road transport officer, produce the certificate of insurance issued in respect of the vehicle…
The section goes on to mention:
If any person fails to comply with this section, he shall be guilty of an offence.
You get the drift: You need to show your vehicle insurance if you’re asked for it, and if you don’t, you can be penalized. But don’t fret, as the section also later says that you have up to 5 days to produce your insurance certificate if you don’t have it with you then and there.
Why is vehicle insurance needed?
Okay, so this might be a no-brainer. We all know why we need insurance: it provides financial coverage and security when something untoward happens. Besides car insurance, most of us have life insurance, medical insurance, travel insurance, you name it. The point is, it’s vital to cover ourselves in all aspects of our lives, and that includes being on the road.
Related: 5 Types Of Insurance You Need But May Not Have
With more and more people filling the highways again, there is a greater need for protecting yourself when you’re driving. There have already been several reports of serious accidents, like the one that happened in Ulu Yam today. Besides that, as interstate travel is now allowed, you should ensure that you’re sufficiently protected if you need to journey to a different state.
Now, if you don’t have vehicle insurance at all and are thinking of getting one at this point, you’re in luck.
Liberty Insurance is currently having their Kaw Kaw Campaign and if you sign up today for selected policies such as their Private Car Comprehensive policy, you can win a brand new car or some other exciting prizes such as motorcycles and mobile phones!
Want to know more? Find out all the information you need here, and you can check out their terms and conditions as well. Ready to sign up? Click the link below!
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CIMB Is Introducing A New Term Investment Account That’s Perfect For SMEs In Malaysia!
- By CompareHero.my
- October 8, 2021
If you’ve ever wondered what happens when a bank runs out of funds, the bank will actually borrow from another financial institution. When banks borrow from each other like this, they are charged what is known as an overnight policy rate (OPR).
When Covid-19 hit our country, Bank Negara Malaysia slashed the OPR several times to help the economy recover faster. While the OPR was at 2.75% in January 2020, it now stands at 1.75% at the time of writing.
Now if you’ve heard of a fixed deposit account before, you’d know that it allows you to save a certain amount of money for a fixed period of time. In return, you’ll get a good amount of interest over the course of that time. But what does an OPR have to do with a fixed deposit account?
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Making fixed deposit investment more beneficial
Basically, a low OPR will lead to you having low returns on your fixed deposit investment. Simply put, low OPR = low return for an investment. But if you’re an SME owner who invests, you would want an investment that’s lucrative. You’re also going to be saving whatever funds you have left instead of investing it somewhere that isn’t beneficial to you.
Enter CIMB’s Term Investment Account (TIA-i), something very similar to a Fixed Deposit Account. If you’re worried about low OPR rates that will affect your investments, fret no more. CIMB’s TIA-i is a low-risk option, catered to business owners in Malaysia who want to be careful with where they invest during this time.
CIMB’s TIA-i as a safe option for SMEs
So, what’s so unique about CIMB’s TIA campaign?? For starters, if you decide to open an account, the minimum placement amount is only RM10,000 for businesses. Besides that, the placement period runs for just 6 months. And to give you the best returns, CIMB is offering you a return rate of 2.3% per annum, which is one of the highest rates offered by banks in Malaysia. This is also a higher return rate than any regular savings account can get you.
Other than that, it’s already common knowledge that products offered by CIMB Islamic are Shariah-compliant, and this includes their TIA-i. Islamic contracts are used for TIA-i, and this will be in line with the Mudharabah principle. So, if you’re looking for a safe, Shariah-compliant investment, you’re in the right place!
CIMB wants to help businesses in Malaysia
Like we mentioned earlier, CIMB’s TIA-i is open to all businesses, enterprises and corporations. With the goal of helping businesses during this time, CIMB will also give you 50% of the accrued profits for any investment that is uplifted before the maturity period.
Over the last year, CIMB has come up with various initiatives to help business in Malaysia weather through this pandemic, such as the EVA Chatbot which was created to direct SME owners to find the right financial help, and multiple strategies to help these businesses become more sustainable.
CIMB’s Term Investment Account is another one of these initiatives, as the introduction of a low-risk, high-return investment will benefit business owners. At the same time, it can also foster a stronger habit of saving as businesses will be more confident to invest their money in a Term Investment Account such as this.
The TIA campaign runs from 1st October 2021 to 31st January 2022, so make sure you don’t miss out on this highly rewarding offer.
Disclaimer: Neither CompareHero.my nor the content on it is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. The content on CompareHero.my is for general information purposes only and is not intended to be personalised investment advice or a solicitation for the purchase or sale of securities.
Compargo Malaysia Sdn. Bhd. and/or its affiliates cannot and do not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. CompareHero.my may receive compensation from the brands or services mentioned on this website.
Interested to sign up for CIMB’s Term Investment Account today or want to know more about this? Just click the link below!
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5 Things You Should Know Before Getting a Medical Card in Malaysia
- By CompareHero.my
- October 5, 2021
If you take a closer look at the risk of health issues and the rising costs of hospitalisation and medical care, ensuring that you and your loved ones are covered by a comprehensive medical insurance plan is as important as ever.
Ex-Health Minister Datuk Seri Dr S. Subramaniam shared in 2016 that over a third of Malaysians were directly paying for medical services using their own money, an excessive figure that can lead to financial catastrophe. “Malaysia has high out-of-pocket health payments due to the small number of people who have health insurance or medical benefits at work,” he added in an article in the Malay Mail on 2 June 2016.
As public hospitals are over-utilised in most areas especially cities, investing in a health insurance plan for you and your family is critical to avoid landing yourself in a difficult financial position while still ensuring you receive the medical care and attention that you need.
Before you decide on a medical card, here are 5 factors to consider to help you make the right decision:
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1. The difference between a standalone medical card vs a rider
A medical card can be structured or sold as a standalone medical card or as a rider. A standalone medical card works as a term insurance, the coverage is activated every year as long as you pay the premium. As for a rider, it is bundled with an investment policy as an extra feature.
For a standalone, the cost of insurance (premium) increases every year due to the increase of medical costs according to Malaysia’s medical inflation rate. However, if you buy an investment policy with medical coverage as a rider, you are actually paying a higher premium during the first few years (depending on company) to cover the higher medical premium for your coverage period in the future.
This is why your policy premium does not increase every year despite the medical inflation rate. The amount of the extra premium paid during the first few years will be used to cover the higher medical costs in the future. Throughout the tenure period, at least 46% of the premium left after deducting your insurance charges (medical, critical illness and life) will be injected into the company’s fund for investment purpose.
For example, at 50 years old, the cost of your medical card is RM 2,500 a year. Instead of having to pay RM 2,500 a year, you are still paying RM 2,000 since the first year of medical insurance coverage because the extra RM 500 cost of the medical card has already been covered by the extra premium you paid in the previous years.
2. Comprehensive policies offer more benefits
Today, an investment policy linked with a rider such as medical card, life insurance and critical illness are usually introduced to consumers as a comprehensive insurance policy. Unlike a standalone medical card, a comprehensive policy with investment-linked features may gain cash value over time and the policy will not be terminated easily.
If you opt for a standalone medical card, coverage will cease once you stop paying the premium. As for a comprehensive insurance policy, the medical card will continue to insure the policy holder as the extra premium paid still covers the cost of the medical insurance.
3. Know your financial appetite and the value of the policy
As we’ve seen so far, it makes more sense to buy a comprehensive policy linked with riders (than a standalone medical insurance) as it offers convenience and better coverage. However, plans may differ depending on the insurance company.
Understand these 4 basic factors before buying an insurance policy from any provider:
- Annual and lifetime limit – This is the first factor to consider when reviewing your medical insurance options because it determines the amount of medical insurance you are entitled to.
- Age limit – Some older policies that were purchased at least three years ago may insure you up until 70 years old. However, the newer medical insurance products have extended the age limit up to 90 years old.
- Panel hospitals – Different insurance companies provide various hospital operators and coverage in various panel hospitals.
- Alternative treatments & second opinions from doctors – Some insurance companies such as Allianz include alternative treatments like Chinese medicine and acupuncture in their coverage policy. There are also insurance companies which will cover only one checkup from the doctor when you are hospitalised. Thus, you need to clarify these with your insurance agent before getting your medical card.
4. Medical insurance can only cover hospital expenses
The high hospital bills, unpaid leave, lack of income replacement, medicine and supplement costs, and newer treatment that are not recognised by insurance companies have been neglected by the public and the financial damages can be severe, according to an insurance agent.
“Medical costs and income replacement are the two main things young adults need to take seriously. It is wise to review your insurance every three years to see whether the coverage is still relevant (inflation and other economic indicators as well as new factors), new technology that could indicate increasing costs,” she adds.
To ensure you are insured from additional risks apart from the high hospital bills, an adequate critical illness and life insurance coverage is important too.
5. Your company’s medical insurance is not enough
Though some companies may provide medical insurance for their employees as part of their employment benefits package, the policy may not be comprehensive enough to cover all costs.
You would also need to think long-term, what would happen if you decide to leave the company? You will no longer be insured under the company’s medical insurance policy and you would most likely need to pay a higher premium to get a medical card depending on your age.
Medical costs are on the rise and whether you are a student, a young executive or manager, we would all feel the pinch. By investing in the right medical insurance or getting a trustworthy personal loan, you can avoid falling into financial debt or difficulty and be comforted by the fact that your insurance will help you should you have any health issues.
Medical insurance aside, here are some other types of insurance you may not know you need:
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You Can Have 4 Types of Bank Accounts in Malaysia, But What’s Right For You?
- By CompareHero.my
- October 4, 2021
Whenever you go to an ATM to get some cash, the machine will ask you if you’d like to withdraw funds from your current account or savings account. This might have confused you at some point, as you might have thought that you’d only have one account with your bank.
But what’s interesting is that under just one bank account, there can be other types of accounts. All of them serve different purposes, and you can opt for whatever suits your needs the best. With that, let’s look at the types of bank accounts that are available in Malaysia.
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1. Savings account
This one’s no stranger to us, and pretty much all of us have a savings account. This is where you deposit your salary, or just about any other payments made to you if you aren’t a business holder. As you keep your money in your savings account, the bank will give you an interest based on that amount.
The interest rate isn’t usually high, but of course, the longer you leave your money in the account, the more returns you’ll be seeing. Some banks also offer higher interest rates than others, so if you’re thinking of opening a new savings account, you can check out which bank will reward you the best before deciding.
Besides that, some banks also have different types of saving accounts which are catered to various groups of people. For example, Maybank has saving accounts for kids, teens as well as Shariah-compliant accounts, among others.
2. Current account
Technically, a current account also is somewhat of a savings account, but there are some key differences. For one, the number of transactions you can make with a savings account is more limited. If you’re someone who has to deposit money every single day, a current account would be more suitable for you. Business people, for example, would usually opt for a current account.
Secondly, payments to current accounts are usually made via cheques, as they are meant for larger amounts of deposits. Current accounts will also give you higher interest rates than savings accounts, but again, you’d have to deposit a big amount before you see any returns.
While you just need to deposit a small amount of money to open a savings account, to get a current account, you might need to part with a few hundred ringgit.
Current accounts are also called checking/chequing accounts or demand deposit accounts.
3. Fixed deposit account
Also known as a term account, a fixed deposit is an account you keep money in untouched for a relatively long period of time. Unlike with savings and current accounts, with a fixed deposit, your money is essentially “frozen” until its maturity period. The maturity period can run from a few months up to a few years, depending on the bank.
Now, because your money is left there untouched for quite a while, it will gain a good amount of interest. And the longer your maturity period, the higher your interest. Because of this, fixed deposits are known as investments.
While they can make good investments due to their lucrative returns, bear in mind that you won’t be able to withdraw your money until the term comes to an end. So if you’re looking to start an emergency fund, for example, a fixed deposit account would not be suitable for this purpose.
4. Islamic savings/current/fixed deposit account
Islamic savings, current or fixed accounts have the same functions as their conventional counterparts, but the differences lie in the principles on which they are based. Under Islamic banking, these facilities are tweaked to be Shariah-compliant. What this means is that instead of it being interest-driven, the accounts will give you profit instead.
Most banks in Malaysia have Islamic banking, and they follow principles such as:
- Mudharabah: a partnership where two parties share the profit. One party provides the capital, while the other contributes the skill and labour
- Qard: interest-free financing
- Wadiah: a principle of safekeeping someone’s money and being responsible for it
If you don’t already have any of these in your bank account, you can still opt for them at any time. Again, remember that the requirements, interest rates, deposit amounts and so on will vary from bank to bank. To get the most rewarding deal, get in touch with your bank to find out more.
Speaking of bank accounts, ever wondered what happens when you transfer money to the wrong account? Read the article below to find out!
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Here’s How CIMB Is Helping Malaysian SMEs Become More Sustainable In The Long Run
- By CompareHero.my
- October 1, 2021
In light of how small to medium enterprises (SMEs) have been struggling during the pandemic, CIMB has introduced various initiatives on sustainable business practices to help them. These initiatives are more crucial, especially when SMEs make up the bulk of businesses in Malaysia.
According to SME Corp Malaysia, 98.5% of Malaysian businesses in Malaysia are SMEs.
But why is sustainability important in the first place?
Being sustainable simply means being able to continue doing something without compromising or depleting your resources. For businesses, this means being able to operate successfully in the long-term, regardless of any changes that can happen in that business.
Speaking of changes, the pandemic has forced many businesses to rethink the way in which they run. This is exactly why sustainability is needed now more than ever, as in these challenging times, businesses must learn to adapt and take up practices that can keep them going.
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CIMB is stepping in to help SMEs
But even if a SME owner wants to incorporate sustainable practices into their business, they might not know how to go about it.
That’s why if you own an SME, you can consider CIMB your one-stop financial institution that offers you a variety of ways to make your business more sustainable. From their Financial Assistance Programmes, to programmes that help you upskill as an entrepreneur, to helping you go green, CIMB is ready to get your sustainability journey started.
1. Renewable Energy Financing
Being environmentally sustainable means running your business in a way that isn’t harmful to the environment, and using environmentally-friendly ways to operate. With their Renewable Energy Financing, CIMB is encouraging more businesses to be conscious of the impact of their business on the environment. This initiative is essentially financing to install a solar photovoltaic system on business premises.
If you’ve been wanting to switch to a greener method of running your office, this is exactly what you need. You’ll also get flexible tenure of up to 10 years.
Do note that this initiative is open to all SMEs with a CIMB property loan or financing and you can only install a rooftop solar photovoltaic system. The financing application is subject to the Bank’s credit assessment and approval.
For more information on this, click here.
2. Helping SMEs become more digitized
Like we said earlier, the pandemic has taught us the importance of having to change with the present times. For many businesses that used to operate physically, surviving during Covid-19 meant moving their business online and becoming digitized. Apart from businesses that made the switch, we also saw many new businesses that cropped up online.
But pandemic or not, there are many perks to digitizing a business. For one, it’s more secure as any transaction you make will be safely recorded. There are also reduced costs, as you won’t have to worry about always having a physical office.
Besides that, marketing your business will be a lot easier, especially if you have a strong social media presence, and you’ll be able to reach a lot more potential customers.
For more information on what CIMB is doing in this respect, click here.
3. EVA, CIMB’s Chatbot
Apart from offering initiatives to help your business be more sustainable, CIMB also wants to make that help more accessible to you in the first place.
That is why they created their chatbot, EVA. EVA, a well-trained chatbot that’s been modelled after CIMB Singapore’s chatbot, has the ability to answer your questions on the kind of help you can get from CIMB. EVA can also let you know whether you’re eligible for assistance and if you are, it will point you to available options.
With EVA, CIMB has managed to cut down their customers’ wait times drastically as it will get back to you with a response in under 24 hours. If you use EVA, you won’t even need to be physically present at the bank, but you can still get your queries answered efficiently.
We recently wrote an in-depth article on EVA and how you can access it. You can give that article a read here:
Related: Meet EVA, CIMB’s Chatbot That Can Help You Find The Right Assistance For Your SME
4. CIMB Online e-Statement
CIMB is also committed to reducing their (and your) carbon footprint. This is where CIMB’s Online e-Statement comes into the picture. The goal is to progressively move CIMB’s mode of communication from paper-based to digital statements, starting with the Business Current Account/-i monthly statements. Besides the environmental benefits, these are some other perks of CIMB’s Online e-Statements:
- You don’t need to worry about having to store tons of paper for record purposes. Everything is stored digitally.
- Downloading the Online e-Statements from BizChannel@CIMB will give you robust security features.
- You get to export your Online e-Statements in CSV format (in addition to PDF) for easy reconciliation.
What are other efforts CIMB has taken?
buySolar: Switch to Renewable
The world is slowly transitioning to a low-carbon economy, powered by renewables and alternative energy. CIMB is the first financing partner for buySolar—Malaysia’s first one-stop online marketplace for solar installation connecting solar buyers and suppliers—to offer both Islamic and conventional financial solutions to fund solar energy solutions for both the residential and business segments.
CIMB Card holders are also eligible for a 10% discount when they make the switch to solar power.
You can read up on other sustainable practices that CIMB has adapted here.
