Page 61 - LIAM Annual Report 2021

AnnuAl RepoRt 2021 59

REPoRt oF thE managEmEnt committEE

omBudsman FoR Financial
sERvicEs

The annual engagement session between
Ombudsman for Financial Services (OFS) and LIAM
members continued to be held online on 5 August
2021. OFs shared the review of the number and types
of disputes received, registered and resolved as of 30
June 2021. OFS also shared its observations of the
cases and gave suggestions on how companies could
improve in handling dispute cases.

LIAM members comprising Heads of Customer Service, Complaints Units and Claims, took the opportunity to seek clarification
from OFs on a few issues including how OFs handles cases that are not within its jurisdiction, how cases are assigned among case
managers, the application of OFS’ Monetary Jurisdiction and circumstances of settlement based on goodwill.

The OFS is the operator of the Financial Ombudsman Scheme (FOS), an alternative dispute resolution channel to resolve disputes
between consumers and financial service providers including life insurance companies. The FOS was launched on 1 October
2016. As of 31 July 2021, OFS has a total of 214 members comprising licensed insurers, licensed commercial banks, prescribed
development financial institutions, approved financial advisors and Islamic financial advisors, licensed Islamic banks, licensed
Takaful Operators, approved Insurance/Takaful brokers and approved designated payment instrument issuers.

EngagEmEnt with Fomca and nccc on consumER issuEs

During the year, LIAM continued to engage with the Federation of Malaysian Consumers Association (FOMCA) and the National
Consumer Complaints Centre (NCCC) as part of the industry’s efforts to create an understanding and mutual relationship with the
consumer bodies and manage consumer issues diligently.

We organised a virtual meeting with FOMCA President,
saravanan Thambirajah and NCCC senior Manager
s.Baskaran, together with their respective teams,
on 5 August 2021 following the virtual handover of
a Memorandum by FOMCA to BNM on 16 July 2021
concerning issues related to medical insurance
premium repricing and rising medical costs.

At the meeting, LIAM shared the key drivers of the
increase in medical insurance premiums and medical
costs, highlighted the industry’s proactive efforts
in managing the issues and the implementation of
industry-wide relief efforts to assist policyholders
during the pandemic.

It was also highlighted during the meeting that the issue of rising medical costs and medical premiums does not rest solely on
insurance and takaful operators. All stakeholders must to come together to address the areas of concern to improve the situation.
LIAM subsequently submitted an official industry’s response to the items highlighted in the Memorandum to BNM.