On October 29th, 2020, the Annual General Meeting for the CAB stakeholders has been held at the Concorde Hotel, Kuala Lumpur. The objective of the AGM is to provide the annual report of production through CAB for the year 2019.
Due to the pandemic safety concerns, the AGM was organized into two separate environments – physical attendance and online video conference via Microsoft Teams. All the board members were involved in the physical meeting with other 8 representatives from various CAB members. Meanwhile, 16 stakeholders opted to participate in the meeting via video conference. To ensure the event complies with the Standard of Procedure (SOP) for Covid-19 preventive measures, all the seats were arranged with a distancing measurement, and all participants are required to scan with the MySejahtera app and ensure they are wearing face mask throughout the meeting.
The agendas of the meeting are as below:
For the period between 1 April 2019 until 31 March 2020, CABFAC business has recorded a total number of transactions of 21,423 and the total net premiums recorded are RM 336 million. Meanwhile, the total number of transactions for CABCO was recorded at 54,893 with total net premiums at RM 324 million. The report was accepted with no rejection by the stakeholders.
The bureau manager reported that as at 31st March 2020, the total current registered CAB members are 43 member which consists of insurance companies, reinsurers, and brokers. In regard to the CAB performance between 1st April 2019 to 31st March 2020, the total volume of transactions has increased by 1.9% compared to last year. However, the volume does not reflect the total premium as there is a declining of 0.6% compared to the same period. The broker business recorded an increase of 60% but decreased by 9.2% in term of the Growth Premium for brokers. The report was accepted with no rejection by the stakeholders.
On 20th May 2020, the Supervisory Board adopted the audited accounts of the Central Administration Bureau for the period ended 31st March 2020 together with the Auditors’ Report thereon. The report was accepted with no rejection by the stakeholders.
As per Article 8.6 (vii) of the Collective Agreement, the Supervisory Board at its meeting held on 28th February 2019 had considered the income of the CAB and budget for the forthcoming year.
|FYE2020||CABFAC (RM)||CABCO (RM)||TOTAL (RM)|
|Total operating income||1,498,053||1,120,241||2,618,294|
|Total operating expenses||(1,328,292)||(838,628)||(2,166,920)|
|Surplus from operation||169,761||281,613||451,374|
|Tax on interest income||(65,344)||(55,990)||(121,334)|
|FINANCIAL YEAR ENDED (FYE)||CABFAC (RM)||CABCO (RM)||TOTAL (RM)|
|Transaction Charges @ RM1.00 per transaction|
|Transaction levy @ 0.20% on net accepted premium but for CABCO with ceiling of RM5,000 whichever is lower|
|Annual Fee @ RM7,195 per member|
|Annual Fee @ RM1,500 per broker|
|Monthly fee of RM50 for brokers|
|BUDGET FYE2021||CABFAC (RM)||CABCO (RM)||TOTAL (RM)|
|Total operating income*||1,586,450||1,149,000||2,735,450|
|Total operating expenses||(1,379,560)||(1,024,460)||(2,404,020)|
|Surplus from operation||206,890||124,540||331,430|
|Tax on interest income||(63,000)||(62,000)||(125,000)|
*Including transaction charges, annual fee and interest income
The report and proposal were accepted with no rejection by the stakeholders.
The members of Supervisory Board for tenure 2019/20 as below:
|1||Allianz General Insurance (Malaysia) Berhad||Mr. Zakri Mohd Khir||CAB Chairman|
|2||AIG Malaysia Insurance Berhad||Mr. Antony Lee||PIAM Representative|
|3||Malaysian Reinsurance Berhad||Mr. Zainudin Ishak||Permanent Member|
|4||Lonpac Insurance Berhad||Mr. Looi Kong Meng||Board Member|
|5||Takaful Ikhlas General Berhad||Mr. Eddy Azly Abidin||Board Member|
|6||Pacific & Orient Insurance Co. Bhd.||Mr. Noor Muzir Mohamed Kassim||Board Member|
|7||Kuwait Reinsurance Company||Mr. Abdallah Badaoui||Board Member|
One of the Supervisory Board members, Mr. Looi Kong Meng from Lonpac Insurance Berhad has just completed his 2-years tenure as the board member in 2020. On this AGM, Mr. Looi Kong Meng has been re-nominated as the Supervisory Board members for year 2020-2022. The nomination was accepted with no rejection by the stakeholders.
As all agendas has been discussed, the meeting opened for Q&A session to all participants including those who watch through video conference.
The meeting then concluded at 12.00 noon as there is no further matter arose.