Insurance Act 1996

According to law of Malaysia, an insurance act is an act to provide new laws for the licensing and regulation of insurance business, insurance broking business and adjusting business and for other related purposes.

adjusting business means the business of investigating the cause and circumstances of a loss and ascertaining the quantum of the loss.

Insurance Act 1996 is an act being enacted by the Seri Paduka Baginda Yang di=Pertuan Agong with the advice and consent of Dewan Negara and Dewan Rakyat in Parliament assembled and by the authority of the same.

This act is serve to provide licensing to company which interest on doing business related to insurance and present regulations for insurance business or financial advisory business. A financial advisory business is a business that analyzing the financial planning needs of a person relating to insurance products, recommending the appropriate insurance products, and arranging of contracts in respect of insurance products.

It is good that there is an act that can protect people whom bough insurance and present a guide to insurance company that what can be done and what is prohibited to do.