Extracts from the address of the Chairperson

Mr. Thomas Zachariah,

at the 7th Annual General Meeting on 23rd March 2006

NICS is now in its' 8 th year since our inauguration by YM Tunku Dato' Ya'acob Bin Tunku Abdullah, the Chairman of National Insurance Association of Malaysia (NIAM) in 1998.

The formation of this Society was to cater the need of a forum for claims managers and claims examiners in the industry to meet and exchange views concerning claims related matters and as a platform for members to interact and network effectively.

The activities that the Society had carried out during the 2005-2006 term:

In March 2005, the NICS EXCO appointed the law firm of M/s Dass Jainab & Associates to provide legal opinion on several contentious issues in the area of Bodily Injury claims. This was following the brain-storming that NICS organized in October 2004 for Claims Managers from more than 10 member companies.

In May 2005 NICS held its' annual cocktail for Claims Managers and Claims examiners at the Concorde Hotel K.L. This proved a great opportunity for the members to network and meet-up in an informal atmosphere.

In May 2005, NICS also held its' 2 nd Brain-storming session with the member Claims Managers to deliberate on the legal opinion obtained from M/s Dass Jainab & Associates. The feedback obtained has been referred back to the solicitor concerned for their comments and further input.

In June 2005, NICS formally teamed up with the Bank Negara Malaysia , the Association of Malaysian Loss Adjusters and the M.I.I as joint-organizers of an Insurance Fraud Seminar to be held in March 2006. NICS' member Eddie Lim was appointed the Organizing Committee Chairman.

In August 2005, NICS organized a day visit to the Northport facilty at Port Klang, which was attended by 30 participants. NICS thank the port authorities for the well planned itenary there. Such educational trips that NICS has organized has always been well received.

In September 2005, NICS held a seminar on Medical Insurance Claim for both its' Life and Non-Life members. The seminar which received a "very good" rating from the 30 odd participants attending covered the topics, Disability Insurance in Malaysia , Disability - a Takaful perspective and SOCSO - Coverage / Mechanism of Compensation & Appeal.

In October 2005, the EXCO embarked on an initial study to ascertain the trend of court awards after trial with the intention to highlight relevant issues affecting the industry to PIAM. This study which is still on-going will be continued to receive the attention of the next elected EXCO.

In March 2006, the Regional Insurance Fraud Seminar jointly held by AMLA, MII and NICS with the support of the BNM and the Royal Malaysian Police was held at the Crowne Plaza Hotel. NICS was represented in the Organizing Committee by our Eddie Lim and Thomas. The seminar which was a resounding success attracted over 268 participants from a total of 11 countries. In this context, NICS will continue to work with other associations and insurance bodies to enhance mutual co-operation which can benefit all parties.

In March 2006, NICS welcomed confirmation from Mayban Takaful of its' intention to become a member of NICS. NICS hope to continue with its' effort to encourage other Takaful companies to join us.

The Society recognize and acknowledge that claims managers are extremely busy people, but the Society needs Member's support and contribution in order to be meaningful and effective.

The development of a professional and highly competent claims management in the industry is of paramount importance. Claims is a major cost component of our operations and if the industry are serious about managing claims better, then must commit the time and resources to improving contacts, skills and capability.

The Socierty take this opportunity to express special thanks to NIAM under the leadership of YM Tunku Dato' Ya'acob Bin Tunku Abdullah (The NIAM Chairman for this term) for all their assistance, guidance & support rendered to NICS since our inception.

To Malaysian-Re, the Society's deepest gratitude for all the sponsorships under the education training programmes organized by NICS all these years. Malaysian Re's support has enabled more members to participate in the seminars organized in view of nominal fees we were able to charge.

Thank you.

THOMAS ZACHARIAH

CHAIRMAN, (NICS) 2005/2006

23 rd March 2006