MISSION, VISION AND VALUES STATEMENT

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MISSION, VISION AND VALUES STATEMENTOur VisionTo be an independent, well respected and renowned organisation for providing objective and timelymediation to the consumers of services in the financial services industry.Our MissionTo provide consumers with a vehicle for an objective and timely resolution of disputes, claims andcomplaints arising from services provided by financial institutions (who presently comprise thecommercial banks, Islamic banks, merchant banks, finance companies, insurance companies, takafuloperators and card issuers).xObjectiveWe do not champion the consumer’s rights nor do we champion the rights of financialintuitions. We are completely independent and deal with all the disputes, claims and complaintsfairly and impartially.xIn a timely mannerWe will endeavor to dispose off all disputes, claims and complaints within 3 calendar months,from the date we receive the required complete documentation for each of the disputes, claimsand complaints referred to us by the consumers.Our Shared ValuesIntegrityThis shared value is the cornerstone of our organisation. Our integrity must be without question. We arefully accountable for our independent decisions. Our staff are officers with the highest integrity standardsand who are neither influenced nor compromised in the discharging of their role and function in FMB.ProfessionalismBeing a professional is our hallmark. Our well trained staff will be very objective in discharging theirduties with regard to the disputes, claims and complaints referred to us. Commitment to professionalismmeans that we will deliver qualitative decisions without fear or favour.Competence and KnowledgeWe will be a knowledge based organization and our staff will be well trained and equipped with thecompetencies and knowledge required for the job. Our staff will have the technical capabilities to handlethe complaints, claims and disputes referred to FMB. We will continually upgrade our knowledge andcompetence to international standards.Consumer EducationWe will continue to educate consumers and our members on our role in providing independentmediation services on the disputes, claims and complaints received by the Bureau. We will also shareour knowledge and our experiences with the consumers and our members in appropriate forums.Customer ServiceOur staff will be able to meet with the expectations of the consumers and also manage all those whowrite to us, e-mail us, telephone us or visit us personally. Courteous and warm service will be ourinherent strengths. Approved by Board of Directors on 26.1.2006.

ANNUAL REPORT 2011Table of ContentsPageChairman’s Statement2Members of the Board of Directors4Members of FMB5Overview of FMB’s Operation10Statistics and Graphs:Insurance (including Takaful) Matters20 - 31Banking (including Islamic Banking) Matters34 - 48Terms of Reference of Mediator

A N N U A L R E P O RT 2 0 11CHAIRMAN’S STATEMENTCHAIRMAN’S STATEMENT2011 was a very challenging year for FMB. I had mentioned in my Statement for theyear 2010 that we had a backlog of 3,113 cases pending disposal and that we hadrecruited additional staff to manage the disposal of these cases.The Board’s strategy has produced results and I am glad to report that for the firsttime since FMB commenced its operations in 2005, the total number of casespending disposal has decreased substantially. For the year 2011, a total of 2,844cases were disposed when compared with 1,743 the year before, reflecting anincrease of 63% or 1,101 cases. This has been made possible by the increase in therelevant staff who had contributed significantly in reducing the backlog. It isenvisaged that by the fourth quarter of 2012 all the backlog would have been clearedand we would be current in disposing the complaints registered with FMB.2.Members who attended the last AGM held on 23 June 2011 would recall thattwo amendments to FMB’s Memorandum & Articles of Association (M&A) weretabled and approved by the AGM and they were subsequently approved by theMinister. These amendments are:(i)to incorporate an appeal process within FMB to enable either aComplainant or a Member to appeal against a Mediator’sdecision.(ii)to increase the number of Directors from 9 to 11, the additional2 to reflect the participation of one representative from TakafulOperators & Islamic Banks on the Board and the other one, anIndependent Director.3.The Board has decided to place the implementation of the amendmentsrelating to appeal provisions on hold pending the introduction of the FinancialOmbudsman Scheme (FOS) later this year. The Board of Directors wants to studythe changes the FOS would bring to the current operations of FMB and address allthe consequential changes which may become necessary. Additionally theimplementation of the appeal provisions at this stage would incur further costs interms of additional staff including other infrastructure costs which may becomeredundant with the changes the FOS may bring.4.The Board anticipates that the introduction of the FOS into FMB’s currentoperations may bring in substantial changes into the way we are operating nowincluding a built-in appeal process. So I ask that Members be patient and wait forFOS changes to come to FMB and the Board will liaise with Members in the eventmajor changes become necessary.5.There have been some representations made by some Members over theamount of levy we are collecting now. Some members feel that as they are small interms of operations and revenue they are still required to pay the same amount oflevy like the other Members who have substantially larger operations including2

A N N U A L R E P O RT 2 0 11revenue. The Board has pondered on this matter and let me assure you that we willrelook at the levy structure when the FOS changes are implemented.6.Let me take this opportunity to thank all Members for their continuous supportfor the operations of FMB and for giving your customers a free alternative disputeresolution channel. As always I welcome any suggestion from Members of how FMBcan improve or enhance its operations for the benefit of Members andComplainants.7.I also wish to thank the staff of FMB for their hard work in resolving thecomplaints registered with FMB especially in managing the backlog and for theirdedication to the cause and objectives of FMB.8.Finally I wish to thank the members of the Board of Directors for their supportand the active roles they have played in dealing with the many issues raised byMembers and the management of FMB.Tan Sri Dato’ Sri Siti Norma binti YaakobChairmanMay 20123

MEMBERS OF BOARD OF DIRECTORSA N N U A L R E P O RT 2 0 11MEMBERS OF BOARD OF DIRECTORS(As at 31 December 2011)ChairmanY. Bhg. Tan Sri Dato’ Seri Siti Norma Binti Yaakob(Retired Chief Judge of Malaya)Deputy ChairmanY. Bhg. Tan Sri Dato’ Sri Tay Ah Lek(Managing Director, Public Bank Berhad)Independent DirectorsY. Bhg.Dato’ Vadaketh Chacko George(Retired Court of Appeal Judge)Encik Ong Chong Hye(Former Head Banking Services, Standard Chartered Bank Malaysia Berhad)Encik Mohd Radzuan bin Abdul Halim(Writer)Y. Bhg. Datuk Marimuthu Nadason(President of FOMCA and ERA Consumer Malaysia)Representing MembersPuan Chuah Mei Lin(Executive Director of Association of Banks in Malaysia)Encik Lim Chia Fook(Executive Director of Persatuan Insuran Am Malaysia)Y. Bhg. Datin Veronica Selvanayagy(Representing Life Insurance Association of Malaysia)4

A N N U A L R E P O RT 2 0 11MEMBERS OF FMBMEMBERS OF FINANCIAL MEDIATION BUREAU (FMB)(As at 31 March 2012)Member from Banking and Financial Institution (Including Islamic Banking)Commercial Banks1) Affin Bank Berhad2) Alliance Bank Malaysia Berhad3) AmBank (M) Berhad4) Bangkok Bank Berhad5) CIMB Bank Berhad6) Bank of America Malaysia Berhad7) Bank of China (Malaysia) Berhad8) Bank of Tokyo-Mitsubishi UFJ (Malaysia) Berhad9) Citibank Berhad10) Deutsche Bank (Malaysia) Berhad11) Hong Leong Bank Berhad12) HSBC Bank Malaysia Berhad13) J.P. Morgan Chase Bank Berhad14) Malayan Banking Berhad15) OCBC Bank (Malaysia) Berhad16) Public Bank Berhad17) RHB Bank Berhad18) Standard Chartered Bank Malaysia Berhad19) Sumitomo Mitsui Banking Corporation Malaysia Berhad20) The Bank of Nova Scotia Berhad21) The Royal Bank of Scotland Berhad22) United Overseas Bank (Malaysia) BerhadIslamic Banks1) Affin Islamic Bank Berhad2) Alliance Islamic Bank Berhad3) Al Rajhi Banking & Investment Corporation (Malaysia) Berhad4) AmIslamic Bank Berhad5) Asian Finance Bank Berhad6) Bank Islam Malaysia Berhad7) Bank Muamalat Malaysia Berhad8) CIMB Islamic Bank Berhad9) Hong Leong Islamic Bank Berhad10) HSBC Amanah Malaysia Berhad11) Kuwait Finance House (Malaysia) Berhad12) Maybank Islamic Berhad13) OCBC Al-Amin Bank Berhad14) Public Islamic Bank Berhad15) RHB Islamic Bank Berhad16) Standard Chartered Saadiq Berhad5

A N N U A L R E P O RT 2 0 11Investment Banks1) Affin Investment Bank Berhad2) Alliance Investment Bank Berhad3) AmInvestment Bank Berhad4) BNP Paribas Malaysia Berhad5) CIMB Investment Bank Berhad6) ECM Libra Investment Bank Berhad7) HwangDBS Investment Bank Berhad8) Industrial and Commercial Bank of China (Malaysia) Berhad9) KAF Investment Bank Berhad10) Maybank Investment Bank Berhad11) MIDF Amanah Investment Bank Berhad12) OSK Investment Bank Berhad13) Public Investment Bank Berhad14) RHB Investment Bank BerhadDevelopment Financial Institutions1)2)3)4)5)Bank Kerjasama Rakyat MalaysiaBank Simpanan NasionalBank Pembangunan Malaysia BerhadBank Perusahaan Kecil dan Sederhana Malaysia Berhad (SME Bank)Export-Import Bank of Malaysia Berhad (EXIM Bank)Payment System Operators and Payment Instrument Issuers1) AEON Credit Service (M) Berhad2) Diners Club (M) Sdn Bhd3) MBF Cards (M) Sdn BhdMember from Banking and Financial Institution (Including Islamic Banking)Commercial BanksIslamic BanksInvestment BanksDevelopment Financial InstitutionsPayment System Operators and Payment Instrument sMembersMembers

A N N U A L R E P O RT 2 0 11Member from Insurance Companies (Including Takaful Operators)Life Insurance Companies1)2)3)4)5)6)7)8)Allianz Life Insurance Malaysia BerhadAmLife Insurance BerhadAXA Affin Life Insurance BerhadCIMB Aviva Assurance (Malaysia) BerhadGreat Eastern Life Assurance (Malaysia) BerhadManulife Insurance BerhadTokio Marine Life Insurance Malaysia BerhadUni.Asia Life Assurance BerhadGeneral Insurance Companies1) ACE Jerneh insurance Berhad2) Allianz General Insurance Company (Malaysia) Berhad3) AXA Affin General Insurance Berhad4) AmG Insurance Berhad5) Berjaya Sompo Insurance Berhad6) Chartis Malaysia Insurance Berhad7) Kurnia Insurans (Malaysia) Berhad8) Lonpac Insurance Berhad9) MSIG Insurance (Malaysia) Bhd10) MUI Continental Insurance Bhd11) Multi-Purpose Insurans Bhd12) Overseas Assurance Corporation (Malaysia) Berhad13) Oriental Capital Assurance Berhad14) Pacific & Orient Insurance Co. Berhad15) The Pacific Insurance Berhad16) Progressive Insurance Berhad17) QBE Insurance (Malaysia) Berhad18) RHB Insurance Berhad19) Tokio Marine Insurans (Malaysia) Berhad20) Uni.Asia General Insurance BerhadComposite Insurance Companies1)2)3)4)5)6)7)American International Assurance BhdETIQA Insurance BerhadHong Leong Assurance BerhadING Insurance BerhadMalaysian Assurance Alliance BerhadMCIS Zurich insurance BerhadPrudential Assurance Malaysia Berhad7

A N N U A L R E P O RT 2 0 11Takaful Operator1) AIA AFG Takaful Berhad2) AIA Takaful International Berhad3) CIMB Aviva Takaful Berhad4) ETIQA Takaful Berhad5) Great Eastern Takaful Sdn Bhd6) Hong Leong MSIG Takaful Berhad7) HSBC Amanah Takaful (Malaysia) Sdn Bhd8) MAA Takaful Berhad9) Prudential BSN Takaful Berhad10) Syarikat Takaful Ikhlas Sdn BhdGeneral Reinsurance Company1) Malaysian Reinsurance BerhadMember from Insurance Companies (Including Takaful Operator)Life Insurance CompaniesGeneral Insurance CompaniesComposite Insurance CompaniesTakaful OperatorGeneral Reinsurance embersMembersTotal Member of Financial Mediation Bureau (FMB)Member from Banking and Financial Institution (Including Islamic Banking)Member from Insurance Companies (Including Takaful Operator)Total860 Members47 Members107 Members

Overview of FMB’s Operation

OVERVIEW OF FMB’S OPERATIONA N N U A L R E P O RT 2 0 11Overview of FMB’s OperationComplaint ManagementThe year 2011 has been a very eventful year for FMB. We have managed to reduce thebacklog substantially and by the end of 2012 we hope to be current handling the 2012complaints only. The increase in the relevant staff numbers has enabled 2845 complaints tobe disposed in 2011 when compared with 1743 complaints disposed in 2010.A summary of the number of complaints registered with FMB since its inception in 2005 isas follows:Total2005200620072008200920102011Brought forwardNew casesDisposedPending 32,1131,7433,113*represents cases carried forward from respective Banking & Insurance Mediation Bureaus.3,1132,2252,8452,493**representsrepresents casescases carriedcarried forwardforward fromfrom respectiverespective BankingBanking && InsuranceInsurance MediationMediation Bureaus .The Mediation Division has been kept extremely busy with the disposal of the complaintsand has achieved a significant breakthrough resulting in a very high number of complaintsbeing disposed in 2011. In the process of disposing the cases the Mediators have raisedsome issues which we hope will be beneficial to all the Members.The Mediators have to operate within the Terms of Reference provided by the Board and allthe Members have to know and appreciate the Terms of Reference. The lack ofunderstanding of the Terms of Reference has led to some Members questioning thedecisions made by the Mediators. At the same time there are several complainants who seeFMB as a consumer activist which is supposed to fight for the consumer’s rights and this is awrong perception.The real fact is that FMB is neutral party to the complaint and is supposed to look at theresolution of all the complaints in a “fair and reasonable” manner as provided by the Termsof Reference.Other observations made include the lack of consumer education especially whenconsumers sign-up for the different products provided by the financial institutions. One of thefrequent complaints is to do with honestly completing the proposal form particularly formedical insurance products. The story is that the complainant just filled as told or just signedthe blank proposal forms and this has led to several claims being rejected.The SMS & internet banking scams dominated the banking complaints in 2011 with thecomplainants alleging that they were not informed of the complications that can arise whentheir pin number is compromised when they responded to an SMS message or an internetbased message involving their banking institution. Vigorous efforts by the members and theauthorities have almost eliminated the SMS scams and have significantly reduced theinternet based scams as the year went by. Continuous consumer education is the key toeliminate this menance.10

A N N U A L R E P O RT 2 0 11Graph 1- Number of New Cases Registered (2006-2011)For the year 2011, the number of new cases registered with FMB showed amarginal increase to 2,222 cases compared with 2,113 cases registered in2010 or an increase of 5.16% as shown in Graph 1, for both banking andinsurances 9522,1072,2872,3372,6242,1132,222Graph 2- Number of Cases Disposed (2006-2011)The total number of cases disposed in 2011 increased substantially to2,844 cases compared with 1,743 cases disposed in 2010. This ismainly due to the increase of staff in the Mediation Division. Thesummary of cases disposed is shown in Graph 9861,5861,7981,7432,84411

A N N U A L R E P O RT 2 0 11Graph 3 - Number off Pending CasesC(2006--2011)The outstanding casees pending ddisposal subssequently deecreased in 2011.occasespending disposal is 2,496ed withThe total outstanding1 casses compare3,113 casescin 20110. Graph 3 shows the summarysof ppending 1,3481,01586651,1661,9172,7433,1132,496mplainants, telephonetcalls and e-mmail enquirieesMeanwhiile the total number of walk-in comalso increeased as shown ralTotaln ComplainttsTable 1 - Summary on 4416Table 2 – Summaary of Telephone ,,2126,,921508875933411,0021Table 3 – Summaary of E-Mail 8802,321Complaiint Managemment UnitDue to thetincreasee in the nummber of commplaints beinng managedd, the numbber of walk-incomplainnants and telephonetcallscreceiveed, FMB haas decided to set up a ComplaintManagemment Unit (CCMU) to haandle the waalk-in complainants, telephone callls and e-maailenquiriess. These tasks were prevviously handdled by the staffsof the MMediation Divvision.12

A N N U A L R E P O RT 2 0 11Other Operation MattersFinanceFor the year 2011, every Member contributed RM50,000 as levy contribution to finance theoperations of FMB. The levy collection for 2011 was about 67% more than the levy collectionof RM30,000 collected in 2010. The increase in levy collection was necessary to finance thesubstantial increase in the number staff handling mediation, rental for an additional floor andthe consequent expenses for office equipment and furniture. As mentioned by the Chairman,the system of levy collection would be reviewed for a more equitable system to fund theoperations of FMB when the FMB migrates to the FOS soon. The Management assures theMembers that we are very careful with expenses and the Board of Directors closely monitorsour expenses as well.WorkforceFMB has a total of 43 staff. Of this, the Mediation Division has 29 staff comprising 7Mediators, 14 Assistant Mediators and 8 Administrative Assistants. The remaining 14 staffare spread amongst the Human Resource, Finance, Corporate Affairs, Administration andIT. The Management is very mindful in assessing and supplying the human resourcesnecessary for the managing the operations of FMB.PublicityFMB, as in previous years, works closely with its smart partners i.e. Bank Negara Malaysia(BNM), Perbadanan Insurans Deposit Malaysia (PIDM) and Agensi Kaunseling danPengurusan Kredit (AKPK) on publicity activities including public talks and participation inmajor exhibitions around Malaysia.The third Minggu Kesedaran Kewangan (M2K) was held in Village Mall, Sungai Petani,Kedah and it was done with the collaboration amongst the smart partners and SecuritiesCommission. The 2011 event was done on a small scale compared with the previous M2K inJohore Bahru, Kuala Terengganu and Kota Kinabalu respectively, as BNM felt that there is aneed to be more focused and target the semi urban areas for its awareness campaign. Wealso managed to get the support and participation of Persatuan Insurans Am Malaysia(PIAM), Life Insurans of Malaysia (LIAM) and Association of Bank of Malaysia (ABM).FMB also was busy with its own publicity activities such as being interviewed by the pressand received visits from local university students and foreign delegates. These sessions areone of the channels to advertise or promote FMB to the public.The details of FMB’s awareness activities in 2011 are as follows:JANUARYFEBRUARYInterview Session with Utusan Malaysia representative, FMB officeMinggu Kesedaran Pengguna UNIKL MIIT, Bangunan UNIKL, Kuala LumpurMARCHPlanning for Your Future Exhibition, Media Prima, TV3, Bandar Utama, DamansaraVisit by students from UiTM Arau Perlis, FMB officeAPRILMIHAS 2011, Kuala Lumpur Convention CentreVisitors from Saudi ArabiaMinggu Saham Amanah Malaysia, Kuching, Sarawak13

A N N U A L R E P O RT 2 0 11MAYTalk session with PIDM with bankers, PenangTalk session with PIDM with bankers, Johor BahruSambutan Hari Belia, PutrajayaJUNESMIDEC, Kuala Lumpur Convention CentreSELPEX, Shah Alam Convention Centre, Shah Alam, SelangorTalk session with PIDM with bankers, Kuala TerengganuKarnival Bank Rakyat, Kuala Terengganu, TerengganuExpo Keusahawanan Malaysia 2011, Mid Valley, Kuala LumpurPameran Pusat Islam Sempena 15 Tahun UiTM Pulau Pinang, Pulau PinangJULYPIDM Corporate Outreach ProgramHari Koperasi Negara 2011, PutrajayaTalk session with PIDM with financial institutions, Kuching, SarawakTalk session with PIDM with financial institutions, Kota Kinabalu, SabahAUGUSTRamadhan and Hari Raya Aidil FitriSEPTEMBERUKM Convocation Exhibition, UKM Bangi, SelangorTalk session with PIDM with financial institutions, Alor Setar, KedahFinancial Literacy Month, National Library, Kuala LumpurOCTOBER1st International Women in Business Convention 2011, MITC, MelakaTalk session with PIDM with financial institutions, MelakaTalk session with PIDM with financial institutions, Seremban, Negeri SembilanM2K 2011, Sungai Petani, KedahNOVEMBERTalk session with PIDM with financial institutions, Kota Bahru, KelantanTalk session with PIDM with financial institutions, Kuantan, PahangDECEMBERSatu Daerah Satu Industri Peringkat Nasional 2011, MITC, MelakaOther ActivitiesThe year 2011, marked a new chapter in FMB’s history as the Management organized itsfirst ever Staff Day in Port Dickson. Various activities were organised by the Sports ClubCommittee such as telematch and karaoke competition. Since FMB has only 43 staff, theManagement decided to invite the staff’s family along for the event at a minimal cost. TheChairman, Tan Sri Dato’ Seri Siti Norma binti Yaakob, and family also attended this event.The Staff Day was a very exciting experience for all the staff of FMB.14

A N N U A L R E P O RT 2 0 11ConclusionThe management is confident that with the current staff strength particularly in the MediationDivision, FMB will be able to better manage the current outstanding cases and bring them allto current level by the end of 2012. At the same time we are also preparing for the migrationto the FOS by creating the necessary infrastructure such as Complainant ManagementSystem and the Complaint Management Unit, and also providing the training required.FMB wishes to express our heartiest appreciation to our members for their contribution andsupport throughout the years. We also wish to record our sincere thanks to the Board ofDirectors for their continuous guidance and assistance to the Management of FMB. Finallywe wish to thank our staff for their effort and hard work in servicing the interest of all partiesconcerned.John ThomasChief Executive OfficerFinancial Mediation Bureau15

STATISTICSANDGRAPHSInsurance (including Takaful) MattersBanking (including Islamic Banking) Matters

Insurance (including Takaful) Matters

FMB STAATISTICS - INSUURANCETABLE A - SUMMAARYSIS OF NEEW CASES RECEIVEDD IN 2011ANALYS(Cases withinwTermms of Refereence)N ofNo.CasesC81832548791,2701Type off InsuranceGenerall InsuranceLife InsuuranceTakaful Business – GeneralTakaful Business – FamilyTOTALAnalyysis of Neww Cases ReceivedRa at 31 Deasecember 20011TTotalandPermanentPability BenefitPersonal DisaCllaim l4.1%%Othher8.33%Fire1.8%Deeath4.22%Dread Disease1.8%Hosppitalisation &Surgical BenefittClaims19%Motor - OD &MTPPD50.6%20

TABLE A1GENERAL INSURANCEANALYSIS OF NEW CASES RECEIVED(Cases within Terms of Reference)Type of PolicyAll RisksBoilerBurglaryContractors’ All RisksEquipment All RisksExtended WarrantyFidelity GuaranteeFireForeign Maid ProtectorGolfer’sGoods-In-TransitHospitalisation & nery BreakdownMarineMobisureMotor - ODMotor - TPPDPersonal Accident/Workmen's CompensationPublic LiabilitySpecial ContingencyTravelTOTAL21No. of Cases21762222131225141629251388461152818

TABLE A2LIFE INSURANCEANALYSIS OF NEW CASES RECEIVED(Cases within Terms of Reference)Type of PolicyComprehensive Accident Benefit/Accident Indemnity ClaimComprehensive/Personal Accident & Hospitalisation Benefit ClaimDeath ClaimDread DiseaseEnhanced Payor Waiver of Premium Benefit ClaimHospitalization Surgical Benefit ClaimMortgage Reducing Term Assurance (MRTA)Temporary DisabilityTotal and Permanent Disability Benefit Claim (TPD)TOTALNo. of Cases182402231826151325Type of PolicyContractors’ All RisksFireGroup Personal AccidentHouseowner/HouseholdersNo. of Cases1123TABLE A3TAKAFUL BUSINESS – GENERALANALYSIS OF NEW CASES RECEIVED(Cases within Terms of Reference)28Motor - OD13Motor - TPPDTOTAL48TABLE A4TAKAFUL BUSINESS – FAMILYANALYSIS OF NEW CASES RECEIVED(Cases within Terms of Reference)Type of PolicyDeathDread DiseaseGroup Personal AccidentHosp. Surgical Benefit ClaimTotal and Permanent Disability Benefit Claim (TPD)Temporary DisabilityTOTAL22No. of Cases131153217179

TABLE B - SUMMARYCAUSES OF DISPUTES FOR NEW CASES IN 2011(Cases within Terms of Reference)Cause of DisputeType of InsuranceGeneral InsuranceLife InsuranceTakaful Business GeneralTakaful Business losure/MisrepresentationBreach 331,270Analysis of Causes of Disputes for New Casesas at 31 December 2011Quantum 7%Lapsed0.9%Others2.6%Terms of Policy41.7%Breach ofWarrantyCondition22.0%23

TABLE B1GENERAL INSURANCECAUSES OF DISPUTES FOR NEW CASES(Cases within Terms of Reference)Cause of DisputeType of PolicyAll RiskBoilerBurglaryContractors’ All RisksEquipment All RisksExtended WarrantyFidelity GuaranteeFireForeign Maid ProtectorGolfer’sGoods-In-TransitHospitalization & SurgicalHouseowner/HouseholdersMachinery & EquipmentMarineMedical/HealthMotor - ODMotor - TPPDPersonal Accident/Workmen'sCompensationPublic LiabilitySpecial nity1118310219367124--Breach 2591Others131152818

TABLE B2LIFE INSURANCECAUSES OF DISPUTES FOR NEW CASES(Cases within Terms of Reference)Cause of DisputeType of PolicyComp. Accident Benefit/Accident Indemnity ClaimComp./Personal Accident& Hosp. Benefit ClaimCritical Illnesses BenefitClaimDeath ClaimEnhanced Payor Waiver ofPremium Benefit (EPWP)Hosp. Surgical Benefit ClaimMedical and HealthTemporary DisabilityTotal and PermanentDisability closure/MisrepresentationBreach -2120501881999810132518TABLE B3TAKAFUL BUSINESS – GENERALCAUSES OF DISPUTES FOR NEW CASES(Cases within Terms of Reference)Cause of DisputeType of PolicyFireGroup Personal AccidentHouseowner/HouseholderMotor - ODTerms ofPolicyQuantum reach ofWarrantyCondition1201319-816Motor - TPPDTOTAL3-LapsedTOTAL-224712711348TABLE B4TAKAFUL BUSINESS – FAMILYCAUSES OF DISPUTES FOR NEW CASES(Cases within terms of Reference)Cause of DisputeType of PolicyCritical IllnessesDeathGroup PersonalAccidentHosp. SurgicalBenefit ClaimTemporary DisabilityTotal & PermanentDisability closure/MisrepresentationBreach -131----1-121-----216222111179325OthersTOTAL4

TABLE C - SUMMAARYSIS OF CAASES COMPLETED/RRESOLVEDD IN 2011ANALYS(Cases withinwTermms of Refereence)CASESGenerall InsuranceLife InsuuranceTakaful Business – GeneralTakaful Business – FamilyTOTTALCompany''s 59TOTALT1,04837958741,559Analyssis of Meediatorss' Decisioonas at 31 Deecemberr 2011ConfirmmedDecisiion55%%Revisedd Decision445%26

TABLE C1GENERAL INSURANCEANALYSIS OF CASES COMPLETED/RESOLVED(Cases within Terms of Reference)CASESAll RisksAuto ProBurglaryBusiness GuardCommercial VehicleContractor's All RiskEquipment All RisksErection All RiskExtended WarrantyFidelity GuaranteeFireForeign Maid ProtectorGolfer’sGoods In TransitHospitalisation & SurgicalHouse owner/HouseholdersMachinery BreakdownMarineMobisureMedical/HealthMoney PolicyMotor – ODMotor – TPPDPersonal Accident/Workmen's CompensationPublic LiabilitySmart ProtectionSpecial ContingencyTravelTOTAL27Company's 24131111228215431826125155114388411701,048

TABLE C2LIFE INSURANCEANALYSIS OF CASES COMPLETED/RESOLVED(Cases within Terms of Reference)CASESComprehensive Accident Benefit/Accident IndemnityClaimComprehensive/Personal Accident & HospitalisationBenefit ClaimDeathDread DiseaseEnhanced Payor Waiver of Premium Benefit Claim(EPWP)Hospitalisation Surgical Benefit ClaimMortgage Reducing Term Assurance (MRTA)Temporary DisabilityTotal and Permanent Disability Benefit Claim (TPD)TOTALTABLE C3TAKAFUL BUSINESS – GENERALANALYSIS OF CASES COMPLETED/RESOLVED(Cases within Terms of Reference)CASESAll RisksBurglaryContractor All RisksFireGroup Personal AccidentHouse owner/HouseholdersMotor - ODMotor - TPPDPublic LiabilityTOTALCompany's DecisionREVISED 2218151379Company's DecisionREVISED 58TABLE C4TAKAFUL BUSINESS – FAMILYANAL

4) Bangkok Bank Berhad 5) CIMB Bank Berhad 6) Bank of America Malaysia Berhad 7) Bank of China (Malaysia) Berhad 8) Bank of Tokyo-Mitsubishi UFJ (Malaysia) Berhad 9) Citibank Berhad 10) Deutsche Bank (Malaysia) Berhad 11) Hong Leong Bank Berhad 12) HSBC Bank Malaysia Berhad 13) J.P. Morgan Chas