PETALING JAYA: The Cabinet has decided not to go ahead with the proposal to link the National Higher Education Fund (PTPTN) with Bank Negara’s credit reference database.
Youth and Sports Minister Khairy Jamaluddin on Wednesday in his tweet, thanked Prime Minister Datuk Seri Najib Tun Razak and the education ministers for the decision.
“Just finished with the Cabinet meeting. PTPTN will not go ahead with its proposal to list the defaulters under CCRIS”.
Last Monday, Education Minister II Datuk Seri Idris Jusoh had announced that PTPTN would be collaborating with Bank Negera to list PTPTN loan defaulters under the Central Credit Reference Information System (CCRIS).
He said the system would be put in place for those who are adamant about not repaying their loans.
The announcement has drawn flak from many quarters across the political divide, saying that the move would create more difficulties to the students.
KUALA LUMPUR: Starting this month, the National Higher Education Fund Corporation (PTPTN) is collaborating with Bank Negara to list PTPTN loan holders under the Central Credit Reference Information System (CCRIS).
According to Education Minister II Datuk Seri Idris Jusoh, those who have not settled their loan repayments should discuss this matter with PTPTN or they might face difficulties when applying for other loans.
However, he said this was not something scholars should worry about.
“This system was put in place for those who are adamant about not repaying their loans,” said Idris during a press conference Monday after the PTPTN Hari Raya celebration here.
He added that those unable to repay their loan could discuss their payment plan with PTPTN to come up with a new repayment schedule.
This would enable their names to be excluded from the CCRIS database, he added.
Those who managed to repay their loans in one lump sum before Sept 30 this year will get a 20% discount.
KUALA LUMPUR: BANK Negara Malaysia has introduced a slew of new financing measures to rein in escalating household debt in the country.
The measures include limiting personal financing loans to a maximum of 10 years from 25 years and property loans to a maximum of 35 years from 45 years.
The central bank has also prohibited the offering of pre-approved personal financing products, such as unsolicited pre-approved credit cards.
The measures, which take effect immediately, will impact 33 financial institutions and close to 500 cooperatives in the country which provide financing means to cover the purchase of residential and non-residential properties, transport vehicles, credit cards, securities and personal use.
Earlier this week, Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said household debt had risen to 83 per cent of the gross domestic product, placing Malaysia as one of the highest in the world.
Explaining the move, central bank governor Tan Sri Dr Zeti Akhtar Aziz said household debts, which stood at 70 per cent of the GDP in 2009, had increased at a strong pace since, averaging at an annual rate of 12 per cent.
“It has not reached an alarming stage yet but with the current external risks to growth, this has raised the concern of affordability and sustainability of the household sector,” she said, adding the regulation had also just come into force.
Apart from properties which form the bulk of household debts with 44.5 per cent of the total, personal loans contributed 16.8 per cent of household debt.
In a briefing to news editors yesterday, she described the reduction in tenures for personal financing and property loans as reasonable.
“Even if household debt has been supported by positive income and employment conditions, there has been a trend in the offering of financial products that are not in the long-term interests of consumers.
“While this may reduce monthly repayments, in the long run, this increases the overall debt burden of households.”
As such, key credit providers are required to ensure that the debt service ratios of vulnerable groups should not exceed 60 per cent, so as to ensure households have sufficient financial buffers to protect them against rising costs and unexpected adverse events.
“However those households which have the financial capacity to take on borrowings will continue to enjoy access to financing.”
The banking industry, she said, welcomed the measures and was keen to reduce the level of indebtedness which can affect the financial sector as well as the growth of the economy.
Banks have been told not to cut back on credit lines with the introduction of the new measures.
Commenting on the previous measures by the central bank, she noted that there had been improvements in the credit card category as well as for automobile financing.
This is an introductory guide to help you better understand insurance protection you can purchase when you travel. It gives you basic information to help you make an informed decision when purchasing travel insurance policy.
What is travel insurance?
You purchase a travel insurance to cover yourself and/or your family against travel-related accidents, losses or interruption. The coverage is usually limited to the period of your travel. However, some insurance companies may offer various combinations of protection to cater to the specific needs of customers, including long-term annual policies if you are a frequent traveller.
Scope of cover
The scope of cover and scale of benefits differ between insurance companies and you should shop around to ensure that you purchase a policy which best meets your requirements. The coverage commonly provided under a travel insurance policy include:
- Personal accident
- Medical and its related expenses
- Loss of baggage, personal effect and money
- Loss of passport
- Personal liability
- Delayed baggage
- Travel delay
You can take a travel policy for you and/or your family members. If you purchase a family policy, coverage for each family member is apportioned from the total sum assured. In the case of a claim, compensation payable will be in accordance to the portion allocated to each member and should not exceed the sum assured in total.
Please note that if you are above a certain age limit, you may not be able to obtain a travel insurance policy.
Understanding the policy benefits
- Personal accident – you are normally covered for death and total permanent disablement for a period within 365 days after the occurrence of the accident. The compensation will be paid according to a scale of benefits and may differ from one insurance company to another.
- Medical and related expenses – coverage for hospitalisation, hospital or surgical expenses, outpatient medical expenses, as well as daily allowances up to a maximum number of days, should you be hospitalised for more than 24 hours.
- Loss of travel deposit or curtailment of journey – you will be reimbursed for expenses incurred due to loss of travel or accommodation expenses paid due to cancellation or curtailment of the journey.
- Loss of baggage, personal effects and money – this covers accidental loss or damage to your baggage, clothing, personal effects, and even money, caused by the carrier.
- Loss of passport – you will be reimbursed for additional hotel charges, travel and other expenses incurred in the country you visited, while obtaining the replacement of a lost passport. Such loss must be reported to the police within 24 hours.
- Personal liability – should you cause accidental bodily injury to a third party or loss or damage to the property of a third party, the insurer will indemnify you for the legal liability.
- Delayed baggage – if your baggage is lost or misplaced for at least 12 hours from the time of arrival at your destination, you will be reimbursed for expenses incurred to purchase essential items of clothing or personal effects.
- Travel delay – you will be paid a sum of money, according to a schedule, if your flight or voyage is delayed for more than 12 hours due to reasons beyond your control.
- Hijacking – the insurer may make daily payments up to a specified maximum number of days, if your journey is interrupted for more than 12 hours due to an act of hijack.
- Repatriation – in the event of accidental death of the insured, the insurer will reimburse the insured’s legal representative for the cost of returning the remains home.
Losses caused by certain events are excluded from the cover. Some common exclusions include:
- War risks
- Suicide and insanity
- Provoke murder or assault
- Childbirth or miscarriage
- Hazardous sports
In addition, there are exclusions involving events such as baggage delay and loss of baggage and personal effects due to seizure or destruction under quarantine or custom regulation. You are advised to always read carefully and understand your policy exclusions.
Important points to note when buying travel insurance
Check with your insurance company on the personal effects that can be covered under travel insurance as the coverage differs between insurance companies.
You are advised to nominate a beneficiary and ensure that your beneficiary is aware of the travel insurance policy that you have purchased.
If you have purchased more than one travel insurance policies, in the event of your demise and disablement, you or your beneficiary, as the case may be, will be compensated for each policy. However, for certain losses such as medical expenses which are compensated on reimbursement basis, you will only be compensated once for the actual loss suffered.
Ensure that your insurance company has a good network of foreign affiliates which can provide you with the necessary assistance when required
Medical and emergency assistance
It is important to check whether your insurance company provides 24-hour emergency hotline service.
What should you do in the event of damage/loss
- Contact the medical and emergency assistance hotline
- Certain travel policies cover 24-hour emergency hotline service which provides you with access to assistance such as medical advice, referrals, medical evacuations and travel related matters such as lost passport and baggage.
- Notify the authorities
- If your insured belongings are lost or damaged, you must take all reasonable measures to protect, save and recover them, and must also promptly notify the local police, hotel, transportation company or transportation terminal authorities, whichever is applicable.
- Notify your insurer as soon as possible
- You should submit the claim form with all supporting documents such as your original policy, the medical report, police report and any relevant documents to support the claim as soon as possible to your insurance company. You should check the time frame for claim notification stipulated in your policy.