Frequently Asked Questions

No. Any person, including an insurance or takaful company, not licensed by the Minister of Finance under section 10(4) of the APK or APKI cannot carry on an insurance or takaful business in Malaysia unless exempted by the Minister of Finance under Section 263 of the APK or Section 274 of the APKI. A person who is found carrying on an insurance or takaful business in Malaysia without a license and not granted an exemption under the APK or APKI, commits an offence under section 8(1)(a) of the APK or APKI as appropriate and Bank Negara Malaysia (BNM) may take enforcement action against the person.

So far, under section 263 of the APK, the Minister of Finance has issued the Financial Services Order (Exemption) 2019 (P.U. (A) 224/2019) and the Financial Services Order (Exemption) 2020 (P.U. (A) 219/2020) which exempt certain insurance companies who are not licensed under the APK to carry on the business of protection and indemnity insurance (P&I insurance) in Malaysia subject to the period and conditions specified in the exemption order.

The list of licensed insurance or takaful companies as well as approved insurance or takaful brokerage companies under the APK and APKI is posted on the BNM website and can be referred to at the following links:-

• https://www.bnm.gov.my/list-of-licensed-financial-institutions
• https://www.bnm.gov.my/list-of-approved-and-registered-intermediaries

In addition, BNM also publishes in the Federal Government Gazette a list of all licensed persons including licensed insurance and takaful companies and any additions or deletions from the list from time to time pursuant to sections 27(1) of the APK and 24(1) of the APKI.

Yes. Any person, including a Malaysian shipowner, who wishes to obtain general insurance/takaful for properties or liabilities from an insurance or takaful company not licensed under the APK or APKI must obtain prior written approval from BNM pursuant to section 127 of the APK or section 139 of the APKI as appropriate:

1. movable or immovable properties located in Malaysia;
2. ships or aircrafts registered in Malaysia; or
3. liabilities of a resident of Malaysia to third parties.

Such requirements must be read in conjunction with the Financial Services Order (General Insurance Contracts for Properties or Liabilities) 2013 (P.U.(A) 205/2013) and the Islamic Financial Services Order (General Takaful Contracts for General Properties or Liabilities) 2013 (P.U.(A) 211/2013).

No. Any insurance or takaful company licensed under the APK or APKI can offer insurance or takaful in Malaysia without having to go through a joint venture with Perlindungan dan Indemniti Malaysia Sdn. Bhd.

However, for companies unlicensed under the APK that have been granted an exemption under the Financial Services Order (Exemption) 2019 (P.U. (A) 224/2019) and the Financial Services Order (Exemption) 2020 (P.U. (A) 219/2020) are subject to the period and conditions specified in the exemption order, among others, the company is only allowed to offer P&I insurance in Malaysia through a joint venture with Perlindungan dan Indemniti Malaysia Sdn. Bhd.

No, companies that have obtained the Financial Services Exemption Order (FSEO) do not require BNM's prior written approval for carrying on P&I insurance business in Malaysia
through a joint venture with Perlindungan dan Indemniti Sdn. Bhd. for the period and subject to the conditions specified in the exemption order.

1. Archipelago Insurance Limited – Financial Services (Exemption) Order2021
2. The members of the International Group of Protection and Indemnity Clubs (IGP&I) – Financial Services (Exemption) (No. 2) Order 2021
3. Maritime Mutual Insurance Association (NZ) Limited – Financial Services (Exemption) (No. 3) Order 2021

The Bank's dedicated contact point to facilitate public queries concerning to the Financial Services Exemption Order (FSEO) and Blue Card matters should be directed to;

BNMTELELINK:(https://www.bnm.gov.my/-/establishment-of-bank-negara-malaysia-telelink-1-300-88-link”)

Foreign yacht owners (i.e. individuals who are not resident in Malaysia or companies incorporated outside Malaysia) can obtain liability insurance or takaful from insurance or takaful companies not licensed under the APK or APKI. This is because they are not subject to section 127 of the APK or section 139 of the APKI which prohibits the acquisition of insurance or takaful coverage of properties or liabilities from insurance or takaful companies that are not licensed under the APK or APKI.

However, for property insurance or takaful, only yacht owners for ships not registered in Malaysia can obtain property insurance or takaful from insurance or takaful companies not licensed under the APK or APKI and they are not subject to section 127 of the APK or section 139 of the APKI.

Section 127 of the APK or section 139 of the APKI is a provision that applies to a resident of Malaysia, and this includes a person who has a physical presence as a resident of Malaysia or a company that conducts or is registered to carry out any business activity in Malaysia. Please refer to the answer to question 4 for the definition of "property" or "liability" in the context of section 127 of the APK or section 139 of the APKI.

Can an insurance or takaful company licensed under the APK or APKI offer an insurance policy with a coverage period of less than 12 months?

For example, in the East Coast during the monsoon season, the boats cannot be operated. Boat owners need an insurance policy coverage period of 6 or 8 months only.