Page 104 - MEDICAL AND HEALTH INSURANCE

MEDICAL AND HEALTH INSURANCE

6.1 DETERMINE THE APPLICATION OF LEGISLATION IN MHI BUSINESS

6.1.1 FINANCIAL SERVICE ACT 2013

The Financial Services Act (FSA) 2013 is enacted to ensure the stability of

financial institutions and others related whereby this Act replaced
Insurance Act 1996, Banking and Financial Institutions Act 1989 (BAFIA),

Exchange Control Act 1953 (ECA) and Payment Systems Act 2003 (PSA).

So that, to ensure the main objective of the FSA is achieve, Bank shall:

i. Foster:

 The security and stability of financial institutions

 The integrity of the money market and foreign exchange

 All the payment systems and instruments are safe, efficient and
reliable

 All the business conduct by financial institutions are fair,

responsible and professional

ii. Protect the rights of consumers

In order to maintain public confidence and critical financial intermediation

activities are not disrupted, FSA provides the Bank with powers to take care all
the financial groups and to counter new and emerging risks to the financial

system.

The important part of implementation in FSA is Schedule 9 which refers to Pre-

Contractual Disclosure and Representations and Remedies for

Misrepresentation for consumer insurance/takaful contracts. Hence, in

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