Circular No 132/2019
Dated 5 July 2019
To Members of the Malaysian Bar
Renewal of Group Term Life Insurance Policy with
Great Eastern Life Assurance Berhad for the 2019/2020 Term
The Bar Council renewed the Group Term Life Insurance Policy with Great Eastern Life Assurance Berhad with effect from 1 July 2019, with an annual insurance premium of RM84.76 per Member of the Bar for a coverage of RM50,000. The cost of this premium is covered by each Member’s payment of the annual LawCare Fund levy pursuant to section 46(3) of the Legal Profession Act 1976.
By comparison, during the last term the annual insurance premium was RM55.44 for a coverage of RM40,000.
We are pleased to inform Members that an option for top-up insurance coverage is now available to Members on a voluntary basis, as described in section C below.
A. Benefits under LawCare
In the event of a Member’s death, RM50,000 will be paid to the Member’s beneficiary, trustee or nominee, and an additional sum of RM2,000 will be paid for funeral expenses.
Members who suffer from terminal illness may, subject to the attending doctor’s final report, claim the sum of RM50,000.
In cases where a Member suffers from a total or partial permanent disability, RM50,000 (or a percentage of this sum, based on the table of benefits contained in the insurance policy) will be paid to the Member.
In addition, where a Member passes away while abroad, the Member’s family is also entitled to claim the repatriation benefit, which covers expenses up to RM50,000.
In the above-mentioned instances, the applicable sum is paid from the insurance policy, subject to the terms and conditions of the policy.
The insurance policy now covers Members up to 75 years of age (as compared to 70 years of age, in previous years). However, Members between the ages of 70 and 75 must provide a health declaration.
In the event of death or disability befalling a Member above 75 years of age, the applicable sum will be paid from the LawCare Fund.
The LawCare and Welfare Committee will also consider the provision of a compassionate payment in circumstances where a Member suffers from a terminal illness (eg cancer), on a case-by-case basis.
All claims are subject to the terms and conditions of the insurance policy.
B. Claims for total or partial permanent disability
In the event a Member suffers from a permanent disability, RM50,000 (or a percentage of this sum, based on the table of benefits contained in the insurance policy) will be paid to the Member. If the full sum of RM50,000 had previously been claimed due to illness or accident, no additional payment will be made upon the Member’s demise.
There are exclusions for claims pertaining to permanent disability, such as a disability caused by a pre-existing condition or an attempt to commit suicide.
All claims are subject to the terms and conditions of the insurance policy.
C. LawCare voluntary top-up insurance coverage
The Lawcare and Welfare Committee successfully negotiated with Great Eastern Life Assurance Berhad to provide Members of the Bar with the following options to purchase top-up insurance coverage on a voluntary basis:
(1) Sum assured of RM30,000 for top-up insurance coverage: annual premium of RM56.60 (prorated premium of RM47.00); or
(2) Sum assured of RM20,000 for top-up insurance coverage: annual premium of RM37.75 (prorated premium of RM31.35).
The amounts of annual premium stated above are for a one-year period, and include the 6% Sales and Service Tax (“SST”).
As the top-up insurance coverage will come into effect on 1 Sept 2019, the amount of the premium will be prorated accordingly, as indicated above. The top-up coverage will be valid until the end of the insurance policy period on 30 June 2020.
In the event a claim is made, the insurer will pay the applicable sum, as well as any top-up amount, to the Bar Council. Subsequently, the Bar Council will liaise with the Member’s beneficiary, trustee or nominee.
A Member who wishes to obtain top-up insurance coverage must complete the application form available here (see pages 5 and 6) and submit it, together with proof of payment, by email directly to the following persons at Howden Insurance Brokers Sdn Bhd, on or before 15 Aug 2019 (Thursday):
(1) Bariah Marwi (bariah.marwi@my.howdengroup.com); and
(2) Edwind George (edwind.george@my.howdengroup.com).
Should you have any enquiries regarding the top-up insurance coverage, kindly contact Howden Insurance Brokers Sdn Bhd at the email addresses listed above.
D. Group Term Life Insurance Policy
For information regarding the benefits and extent of coverage, and for full details of all exclusions, Members are encouraged to peruse the Group Term Life Insurance Policy with Great Eastern Life Assurance Berhad, which will be available here on the Malaysian Bar by 5 Aug 2019 (Monday).
E. Procedure to claim for death or disability
The Bar Council will make the relevant application to the insurer on behalf of each claimant.
However, certain documents will have to be provided by the claimant. The Bar Council will inform the claimant of the required documents, which differ according to the type of claim and claimant.
F. Financial assistance from the LawCare Fund
The LawCare and Welfare Committee will also consider the provision of a compassionate payment in circumstances where a Member suffers from a terminal illness (eg cancer), on a case-by-case basis.
Applications for such financial assistance from the LawCare Fund can be made by submitting the completed application form (which is available here on the Malaysian Bar website) to the Bar Council. The eligibility criteria are stated in the LawCare Rules, which can be viewed here.
G. LawCare Beneficiary / Trustee Nomination Form
In the event of a Member’s death, the sum of RM52,000 and any applicable top-up amount will be paid to the beneficiary, trustee or nominee duly nominated by the Member.
If no nomination has been made, the sum will be paid to either the executor or administrator of the deceased Member’s estate. Additional documents must be provided before payment can be made, such as the Grant of Probate, Grant of Letters of Administration, or Sijil Faraid. Naturally, the claims process will take longer to complete in such circumstances.
Where a nomination has been made, payment is issued immediately upon receipt of funds from the insurer (which usually takes approximately two months from the date of notification). Therefore, it is extremely advantageous for Members to appoint a nominee, as it facilitates the process.
Members who have not made a nomination, or wish to change their nomination, may do so by submitting the completed nomination form (which is available here on the Malaysian Bar website) to the Bar Council.
H. Benefits only apply to Members with valid Practising Certificates
Members are only entitled to the benefits under LawCare if they have paid their LawCare Fund levy and have a valid Practising Certificate at the time of death or claim. However, the Bar Council may waive this requirement in circumstances where non-renewal is occasioned by illness or other justifiable reasons.
I. Contact information
Should you have any enquiries, please contact G Shagela Nair, Officer, by telephone at 03-2050 2099, or by email at shegi@malaysianbar.org.my.
Thank you.
Joseph Mathews P M Mathews and Kuthubul Zaman Bukhari
Co-Chairpersons
LawCare and Welfare Committee