FACULTY BUSINESS AND MANAGEMENT

DIPLOMA IN BUSINESS STUDIES

BA111

RISK AND INSURANCE

INS200

COMPANY:
ETIQA INSURANCE BERHAD
(INSURANCE CAR ACCIDENT PROTECTION SPECIAL)

GROUP:
D1BA1115A

PREPARED BY:
BIL NAME MATRIX NUMBER
1. NURUL ATHINA SOLEHAH BINTI IBRAHIM 2021497344
2. NUR ANIS ATHIRAH BINTI HAZANI 2021801004
3. NOR HAZWANI ALYAA BINTI ANUAL 2021841874
4. NUR AYU NARISYA BINTI MOHD FAUZI 2021851118
5. NURSYAZWANA SUHAI BINTI ABDULLAH 2021829364
6. NOR ALEEYA MYSARA BINTI NOR AZIZI 2021876744

PREPARED FOR:
MR. RAJA ATTIK ARIFFUDDIN BIN RAJA ARIFF

SUBMISSION DATE:
14 JANUARY 2024

1|ETIQA INSURANCE BERHAD

 TABLE OF CONTENT

No. Content Pages

- Acknowledgement 3

1.0 Name of the Policy 4

2.0 The Introduction of the Policy 5

3.0 The Scope of Cover of the Policy 6–7

4.0 The Benefits of Policy 8–9

5.0 The Exclusion of Policy 10 – 12

6.0 Why people who need protection need to buy this policy? 13 – 14

7.0 References 15

8.0 Appendix 16 – 20

2|ETIQA INSURANCE BERHAD

 ACKNOWLEDGEMENT

First and foremost, we would like to forward our humble gratitude to Allah SWT for
the blessing and strength to complete this group assignment. Peace and prayers be
upon His Final Prophet and messenger Muhammad, the ideal role model of human
beings.

We would like to take this opportunity to thank you to our Risk and Insurance
(INS200) lecturer’s Mr. Raja Attik Arifuddin bin Raja Arif for his support and advice to
complete this assignment. We very appreciate what have he done explain about
assignment. May Allah reward he what his done for all his efforts.

We also would like to extend our deepest gratitude and special thanks to all who
have directly guided us in writing this assignment. We express our deepest
appreciation to beloved parents, family, friends, and colleagues for their continuous
encouragement are greatly appreciated.

3|ETIQA INSURANCE BERHAD

1.0 NAME OF THE POLICY
▪ Insurance car accident protection by Etiqa Insurance Berhad.

About Etiqa
The formation of Etiqa started in 2005 with the merger of Malaysia National
Insurance Berhad and Takaful Nasional Sdn Bhd with Maybank Ageas previously
known as Mayban Fortis, a Maybank insurance and takaful operator that includes
Mayban General Assurance, Mayban Life Assurance, and Mayban Takaful. Due
to this merger, the whole insurance and takaful group under the Maybank Group
underwent a rebranding in 2007 and became Etiqa Insurance Berhad (EIB) and
Etiqa Takaful Berhad (ETB). In addition to offering general insurance, life
insurance, general takaful, and family takaful, EIB and ETB are composite
licensees in the insurance and takaful industry. They do this through a variety of
sales channels, including agency energy, insurance and takaful branches,
Maybank branches, other banks, the internet, and automated teller machines
(ATMs). In 2018, Etiqa Takaful started running a General Takaful business licence
under the name Etiqa General Takaful Berhad (EGTB) and a Family Takaful
business licence under the name Etiqa Family Takaful Berhad (EFTB) in
compliance with the Financial Services Act 2013 that was enforced by Bank
Negara Malaysia (BNM).

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2.0 THE INTRODUCTION OF THE POLICY

The insurance industry has always been changing, helping people adjust to new
economic situations and meet the higher standards of safety, transparency, and
effectiveness that financial markets and people want. On account of the rising
recurrence of vulnerability, bosses and business should look for more elevated levels
of wellbeing through original methodologies to solvency, oversight and hazard the
board techniques. Protection firms create pay by facing a challenge.

A unique auto accident protection policy is provided by Etiqa Insurans Am and is

issued in accordance with the individual's premium payment schedule. The
arrangements found Overall Protection Etiqa, for example, street mishaps affecting
the guaranteed individual's vehicle. Then, mishaps, which are rough outer occasions,
obviously incorporates contaminations that happen through an injury or injury that
causes demise or real injury, yet does exclude different diseases, harming, illness,
hemia, regular happening conditions or degenerative cycles. Substantial wounds are
likewise accessible under the unique auto collision security strategy presented by
Etiqa Insurans Am. At long last, super durable handicap, for example, complete
misfortune brought about by removal or aggregate and extremely durable loss of
purpose of an appendage because of going in the protected individual's vehicle.

The established special car accident protection policy provides three benefit
plans for death, permanent disability, and medical costs. The advantage for somebody
taking the principal plan who is engaged with a mishap and results in death is all
around as much as RM 20,000. Also, those subsequent in long-lasting handicap are
RM 500 to RM 20,000 and those including clinical costs are basically as much as RM
500. The benefit of the second plan, in the event of a fatal car accident, is RM 40,000.
Accidents involving medical expenses can cost as much as RM 1,000, and car
accidents that result in insured individuals becoming permanently disabled can cost
as much as RM 1,000 to RM 40,000. At long last, the advantages acquired from plan
3, mishaps that cause passing are all around as much as RM 60,000 and mishaps
that prompt safeguarded individuals to be for all time crippled are essentially as much
as RM 1,000 to RM 40,000. A mishap including clinical costs is basically as much as
RM 1,000.

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3.0 THE SCOPE OF COVER OF THE POLICY

• Body injury

Bodily injury is the extent of coverage provided by the Etiqa Policy and Insurance.
A bodily injury is defined as one that you sustain within the insurance period and that
results directly and exclusively from the accident. This excludes parasitic infections,
viruses, bacteria, and parasites as well as diseases, disabilities, and naturally
occurring conditions. It also excludes conditions induced by progressive processes or
by processes that result in impairment. Consequently, this e-health policy provides
protection in the event that you are judged to be incapacitated, whether temporarily or
permanently. If you sustain a physical accident that causes a temporary partial
disability during the insurance period, Etiqa Policy and Insurance will pay full benefits
for up to twenty-four weeks, starting on the day the doctor certifies the disability. This
benefit is only available if you have never filed a claim under this policy's Section 2. If
you are not employed, operating a licenced business, or otherwise involved in any
registered activity at the time of the accident, Etiqa Policy and Insurance will not
provide these benefits. Students and full-time housewives are included in this.

• Permanent disability

Total loss resulting from an amputation or the complete and irreversible loss of a
limb as a result of an accident while driving the insured person's car. Benefits will be
distributed based on proportions, meaning that 100% of the benefits will be paid for
one or both hands at the wrist, arm between the shoulders and elbow, arm at the
shoulder, leg at the hip, and leg between or below the knee. Within twelve (12)
calendar months of the accident date, Etiqa Insurance and Policy will pay the full
benefit rate for each child or adult if you have a physical injury within the insurance
period that renders you permanently disabled. A maximum benefit of 100% of the
entire benefit may be paid under Section 2. From the date of the accident until the
policy's expiration, coverage will be reduced by the amount of any further losses that
are not fully reimbursed. Benefits for partial disability will not be provided.

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• Death

Death that was exclusively brought on by an accident that occurred while the
insured was driving the car. vehicles included in the Policy Schedule that are licenced
for personal use only and aren't used for commercial purposes. Within a year after the
start date, death benefits consist of a reimbursement of the paid contribution amount
in the event that protected individuals commit suicide while still mentally competent.
The death benefit is a reduction of the sum assured after a year from the start date.
The death benefit is the lesser amount provided if the covered individual kills
themselves while mad. There is up to RM600000 in coverage for each insured person
or passenger in the event of death resulting from an accident while in the insured
person's vehicle. Etiqa Insurance and Policy will pay the full benefit for each adult and
child at once if you have an injury during the insurance period that results in death
within twelve (12) months of the accident date.

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4.0 THE BENEFITS OF THE POLICY

• Accidental Death
Etiqa’s car accident protection special, particularly its coverage for accidental
death, offers policyholders and their families crucial financial security in the face of
unforeseen tragedies. Etiqa guarantees a lump sum payment to the policyholder’s
beneficiaries in the tragic event of a fatal auto accident. For accidental death whilst
travelling in the Insured Person’s vehicle, coverage is up to RM 60 000 per Insured
Person/passengers. This benefit is priceless in reducing the immediate financial
burden incurred by burial charges and other related expenses. Beyond just relieving
the emotional burden of loss, Etiqa’s accidental death coverage offers a substantial
payout to the deceased’s loved ones. It also acts as a practical and compassionate
means of support, assisting families in navigating the difficult aftermath of a fatal
accident with increased financial stability. This aspect of Etiqa’s insurance highlights
the company’s commitment to providing customers and their loved ones peace of mind
during trying times by offering comprehensive protection that goes beyond standard
coverage.
• Permanent Disablement
Etiqa’s car accident protection special, with its coverage for permanent
disablement, offers policyholders a crucial safety net in the event of severe accidents
resulting in lasting disabilities. This benefit makes sure that people with persistent
disabilities be paid to help adjust to new lifestyles and pay for their rehabilitation. The
coverage is up to RM 60 000 in the event of Permanent Disablement per Insured
Person/passengers due to an accident. Beyond covering short-term medical costs,
Etiqa is dedicated to helping people in similar situations financially, taking care of any
long-term issues that may develop from impairments brought on by a car accident.
The benefits offered by Etiqa’s permanent disablement coverage are intended to make
the transition easier for policyholders by allowing them to maintain their standard of
living in spite of the obstacles caused by the accident, whether that means making
adjustments to living quarters or purchasing specialised equipment. This
comprehensive approach illustrates Etiqa’s missions to provide more than just
conventional coverage, emphasizing the significance of continued support and
financial security for persons dealing with the life-altering implications of permanent
disablement.

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• Medical Expenses
Etiqa’s car accident protection special stands out with its exceptional coverage for
medical expenses, providing policyholders with essential financial support in the
aftermath of an accident. Reimbursement for necessary medical costs incurred such
as surgical, hospital and nursing fees if the Insured Person/passengers injured during
an accident. The benefit will be payable if it occurs within 52 weeks from the date of
the accident. This benefit guarantees that anyone who are involved in a car accident
will be fully covered for hospital costs, medical bills and rehabilitation expenses.
Through the financial burden of essential medical treatments being lessened, Etiqa
allows policyholders to focus on their recovery rather than the stress of growing
healthcare costs. The coverage covers the long-term implications of injuries caused in
the accident, going beyond urgent demands. By providing medical expense coverage,
Etiqa demonstrates its commitment to providing a comprehensive and encouraging
insurance solution. This highlights the significance of not only safeguarding against
unanticipated situations but also assisting policyholders in a more speedy recovery
process. This component of Etiqa’s car accident protection special is an essential tool
that offers comfort and stability in hard circumstances.

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5.0 THE EXCLUSION OF THE POLICY
An exclusion is a provision of an insurance policy or bond that referred to hazards,
perils, circumstances, or property which not covered by the policy. Basically, insurance
policies can be complex legal documents and need an experienced one to read the
details thoroughly and explain the contents that included in the policy. Most of the time,
one may understand that something was covered and consider that he or she is safe
in case of emergency, however one should not overlook the exclusion of the policy or
the gap that limits the insurance coverage. There are more than 10 situations and
events that excluded in the policy.

First of all, this insurance does not apply to any event resulting upon or caused
by or arising from these situations. The first one is the Insured Person while committing
or attempting to commit any unlawful act. In the other words, any Insured Person
should not commit any wrongdoings that are under the law. Next, riot, strike or civil
commotion. The event that resulting from any of these following activities is not allowed
or cannot apply to this insurance. Other than that, committing or attempting to commit
suicide. In term of commit suicide, it does not matter whether the Insured Person is
sane or insane because one still at fault for his act. Aside from commit suicide,
intentional self-inflicted injury, insanity or any attempt threat also included as
attempting to commit suicide. The next exclusion of this policy is a complication of
pregnancy, childbirth, abortion and miscarriage. However, it is accepted if the
miscarriage is accidental, while the other complications was still an exception in this
insurance. Next, other than complication of pregnancy, childbirth and so on, provoked
murder or assault also excluded in this insurance. Obviously, this insurance will not
cover any event that resulting or caused by murder or assault activities.

The other exclusion that this policy will not apply is that the Insured Person was
being affected. Being affected considered both affected for temporary or the otherwise.
It could be affected by drug or narcotics. It is an exception if it is taken as prescribed
by qualified registered medical practitioner. In case of alcohol, it can be negotiated in
order to build trust of the insurer party that alcohol was not a factor that contribute to
the event. Next is Human Immunodeficiency Virus (HIV) or any HIV related Illness
including Acquired Immune Deficiency Syndrome (AIDS) or AIDS Related Complex
(ARC) or any mutant derivative or variations howsoever this syndrome has been
acquired or may be named. To be more exact, this insurance would not apply to any

10 | E T I Q A I N S U R A N C E B E R H A D
event that caused by or resulting by the following diseases mentioned above. The next
one is traceable to sickness, disease, parasite, bacteria or viral infection. As an
illustration, any event should not contribute from any disease, parasite, viral infection
and so on. So, this insurance will not cover even though it is contracted by an accident.
Other than that, anthrax, blood-poisoning, erysipelas, ptomaine-poisoning, pyaemia,
septicaemia and tetanus. Basically, these lists following is included as infection in one
body or to be more exact, it is a blood infection due to many causes. So, this insurance
excluded any event that caused by these factors. Next, any pre-existing physical
defect or infirmity. Any event that resulting from physically imperfect or feeble person
would not be covered by this insurance.

The next exclusion of this policy is death or disablement directly or indirectly

arising from loss or damage to any assets and properties. Also, any loss or expense
that resulting or arising from any consequential loss directly or indirectly caused by
ionising or radiations. Also, contamination by radioactivity from any nuclear radiations
or contamination by radioactivity from any nuclear fuel or from any nuclear waste from
the combustion of nuclear fuel. As for the purpose of this exception, combustion should
include any self-sustaining process of nuclear fission or any accident loss damage or
liability both directly and indirectly caused by weapons material. The next one is any
act of nuclear, chemical, biological terrorism. The purpose of this exclusion is that
nuclear, chemical and biological terrorism shall mean the use of any nuclear weapon
or device or the emission, discharge, dispersal, release, or escape of any solid, liquid
or gaseous chemical agent and/or biological agent during the period of this insurance
by any person or group of persons, whether acting as one or on behalf of one. Also, it
could be involved in connection with any organization or government, committed for
political, religious or ideological purposes or any reasons including an intention to
influence any government and to put the public in fear. “Chemical” agent shall mean
any compound which, when suitably disseminated, produces incapacitating,
damaging or lethal effects on people, animals, plants or material property.

11 | E T I Q A I N S U R A N C E B E R H A D
 “Biological” agent shall mean any pathogenic (disease producing) micro-
organisms or biologically produced toxins. It is including genetically modified
organisms and chemically synthesizes toxins that cause illness or death in humans,
animals or plants. Besides that, any activities related to war, invasion, act of foreign
enemy, hostilities or war-like operations also banned in this policy, whether or not the
war be declared. Also, civil war, mutiny, civil commotion assuming the proportions of
or amounting to a popular rising, military rising, insurrection, rebellion, revolution,
conspiracy, military or usurped power. Any insured person related in committing these
activities would not be served as it is an exclusion in this policy. Next, martial law or
state of siege or any of the events or causes which determine the proclamation or
maintenance of martial law or state of siege. Also, any act of any person acting on
behalf or in connection with any organisation with activities directed towards the
overthrow by force of any government or to the influencing of it by terrorism or violence.
For this purpose, an ‘act of terrorism’ means an act, including but not limited to the use
of force or violence and the threat of any person or groups of persons.

The third last is the Insured Person temporarily entering or alighting from the
Insured Person vehicle. Any event that resulting from this act also were excluded in
this policy. The next one is accidents if the vehicle is not used in compliance with all
conditions set by official regulatory authorities. The main point is that the vehicle itself
is not following all the condition set by official regulatory authorities, so it is impossible
for this policy to cover the offense of the Insured Person. Last but not least is racing,
speed testing of the Insured Person vehicle, road rallies or usage of the Insured
Person vehicle for hire. Basically, racing is not an act that can be encouraged as it will
contributing a bad situation ahead, such as injury or accidents. It is same goes to other
activities mentioned above.

In conclusion, this policy covered any events that related to the accident.
However, there are a lot of exception that makes the event cannot be covered.
However, some of the exception can be negotiated by pursuing and built trust from
them that the exclusion is not related at all to the event.

12 | E T I Q A I N S U R A N C E B E R H A D
6.0 WHY PEOPLE WHO NEED PROTECTION NEED TO BUY THIS POLICY?

Driving is important in life as it gives individuals the independence and freedom

to go from one place to another without relying on anyone else. However, the most
use vehicle which is cars are exposed to abundance of risk related to safety issues
such as car accidents that includes the insured person. Therefore, insurance
protection is a must to buy because it is a way to manage risk of unexpected financial
knees. People seeking protection in the event of a car accident should consider
purchasing insurance car accident protection for several reasons.

First and foremost, car accidents may result in significant financial burdens such
vehicle repairs and also medical expenses of the victim. Therefore, purchasing this
policy is a must because car accident protection provides financial protection to the
insured person that will help to cover the expenses that related to vehicle repair or
replacement. This policy will also provide medical coverage for injuries sustained by
the driver and passengers, reducing the financial burden of healthcare cost. This will
totally help the individuals or families to cope with unexpected expenses because of
the accident.

Medical coverage in car insurance typically refers to "Personal Injury Protection"

(PIP) or "Medical Payments" (MedPay) coverage. PIP covers medical expenses, lost
wages, and other related costs for the driver and passengers, regardless of who is at
fault in an accident. MedPay, on the other hand, specifically covers medical expenses
resulting from an accident, regardless of whose fault. Having medical coverage in car
insurance can help cover medical bills, rehabilitation costs, and sometimes even
funeral expenses. It provides a layer of financial protection beyond what health
insurance might cover and can be crucial in situations where injuries occur in a car
accident.

Besides, many regions require drivers to have at least basic car insurance to
legally operate a vehicle including Malaysia. Having a car insurance in Malaysia is a
legal requirement if people intend to drive on the roads. It also typically covers liability
for bodily injury and property damage. Failure to comply may lead to fines, license
suspension, or vehicle impoundment. Additionally, insurance helps protect you and
others involved in accidents by providing financial assistance for medical bills, property

13 | E T I Q A I N S U R A N C E B E R H A D
damage, and legal expenses. It's crucial to understand and comply with local
regulations regarding car insurance to avoid legal consequences.

In addition, this policy also allows for customization based on the insured
individual needs. As for under Etiqa General Insurance Berhad, there are three plans
of insurance car accident protection for people to choose. Plan 1 will provide RM20
000 for death, up to RM20 000 for permanent disability caused by car accidents and
also up to RM500 for medical expenses. Plan 2 will provide the insured RM40 000 for
death, up to RM40 000 for permanent disability and up to RM1000 for medical bills
meanwhile plan 3 provides RM60 000 for death cause by car accidents, up to RM60
000 for permanent disability and up to RM1500 for medical bills. Therefore, people
can choose which plan they want, allowing them to tailor coverage to their specific
requirements and budget. This customization of choices ensures that individuals pay
for the level of protection that aligns with their priorities and risk tolerance.

Furthermore, purchasing car insurance protection offers peace of mind, reducing

stress and uncertainty associated with potential risk of accidents. by acting as a
financial safety net in case of accidents or unexpected events. Not to mention that
knowing the insurance will help to cover repair costs, medical expenses, or liability
claims reduces the financial burden and will also allow them to focus on their recovery
rather than wasting time worrying about financial struggle that was caused by the
accidents. It provides a sense of security and ensures that you are not left alone to
handle the aftermath of unforeseen incidents on the road.

In short, having car insurance is crucial for various reasons. It provides financial
protection in the event of accidents, safeguards against legal consequences, and
ensures peace of mind for both the driver and others on the road. The importance of
car insurance lies not only in compliance with legal requirements but also in mitigating
potential financial and legal challenges that may arise unexpectedly. Purchasing this
policy of car accident protection is a must for people in order to drive safely along with
their family with ease of mind because they are surely under protection of Etiqa’s
insurance protection that will help them if anything unexpected accidents occurs.

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7.0 REFERENCES

1. https://www.etiqa.com.my/getonline/latarbelakang-takaful
2. https://www.etiqa.com.my/v2/personal-accident-insurance-takaful/caps-pa-
insurance#:~:text=Key%20Benefits&text=You%2C%20and%20your%20pas
senger(s,disability%20due%20to%20an%20accident.&text=You%2C%20an
d%20your%20passenger(s)%20are%20each%20eligible%20to,incurred%2
0due%20to%20an%20accident.
3. https://www.etiqa.com.my/v2/insurans-takaful-kemalangan-diri/insurans-
caps-pa
4. https://qoala.my/en/blog/personal-protection/etiqa-insurance/
5. https://m.economictimes.com/definition/exclusions/amp
6. https://www.etiqa.com.my/v2/motor-takaful-egtb
7. https://bjak.my/blog/what-you-need-to-know-about-car-
insurance/#:~:text=As%20car%20insurance%20will%20cover,unexpected%
20events%20involving%20their%20car
8. https://www.policystreet.com/articles/reasons-car-insurance-important/
9. https://www.etiqa.com.my/v2/muat-turun-dokumen/insurans-am
10. https://www.etiqa.com.my/v2/homepage
11. https://www.etiqa.com.my/v2/insurans-takaful-kemalangan-diri/insurans-
caps-
pa#:~:text=Anda%20dan%20penumpang%20akan%20menerima,menyelur
uh%20dan%20kekal%20akibat%20kemalangan.&text=Anda%20dan%20pe
numpang%20akan%20menerima%20pampasan%20sehingga%20RM1%2
C500%20untuk,perubatan%20yang%20ditanggung%20akibat%20kemalan
gan.
12. https://www.etiqa.com.my/v2/homepage

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8.0 APPENDIX

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17 | E T I Q A I N S U R A N C E B E R H A D
18 | E T I Q A I N S U R A N C E B E R H A D
19 | E T I Q A I N S U R A N C E B E R H A D
20 | E T I Q A I N S U R A N C E B E R H A D