Extracts from the address of the Chairman

Mr. Melvin Oh,

at the 8th Annual General Meeting on 29th March 2007

Since our inauguration 9 years ago by YM Tunku Dato' Ya'acob Bin Tunku Abdullah, who was the Chairman of National Insurance Association of Malaysia (NIAM) at that point of time, NICS has successfully carried out various activities over the years that have proven beneficial to the members.

The motivating factor for the formation of this Society was the need of a forum for claims personnel in the industry to meet and exchange views concerning claims Management and other related matters such as fraud and claims leakages. NICS is also intended as a platform for members to interact and network effectively. In view of the above NICS has extended an invitation to Takaful companies to join as members, NICS is proud to announce that it has received affirmative replies from 2 companies Mayban Takaful Bhd and Prudential-BSN Takaful Bhd with Mayban Takaful joining us in 2006 itself.

The activities that the Society had carried out during the 2006/07 term:

In March 2006, NICS was requested by PIAM on behalf of the Joint Working Committee (JWC) on Fraud which is under the aegis of BNM to undertake the Third Party Bodily Injury (TPBI) Project on behalf of the Insurance industry, this was truly a defining moment for NICS as it was a recognition of its existence as a body with the necessary capability and experience by the industry to undertake such a big project.

NICS also successfully co-organised with the Malaysian Insurance Institute (MII) with the participation of Bang Negara, Royal Malaysian Police and AMLA, a Regional Seminar on Insurance Fraud - Detection, Investigation and Prevention on 15-16 March.

In August 2006 NICS organized the "Critical Thinking Skills" Seminar on 1-2 August, held at the Sheraton Imperial Hotel. NICS also appointed Ms Lekha Laxman and Mr Low Hock Heng from University Technology Malaysia to conduct the TPBI Project.

While in September 2006, NICS organized a "Creative Thinking & Problem Solving" Seminar on 6-7 September at the Sheraton Imperial Hotel. NICS also organized a Cocktail Reception on the 7 th September at the Sheraton Imperial Hotel for its members and invited guests.

On 2 nd November the TPBI Project Paper was submitted to PIAM, and it was approved by the PIAM Management Committee on 13/11/2006 with a budget of RM34,052.00. The timeframe to complete the project is to be by May 2007. NICS then distributed the prepared TPBI questionnaires to member companies for their feedback. In addition NICS was given a seat on the JWC on Fraud to report on the TPBI Project, NICS appointed Pn Rosliza Yusoff its Deputy Chairman and also the Project Manager of the TPBI Project as its representative.

NICS was also invited to attend the 1 st workshop on Insurance Fraud organized by PIAM on behalf of the JWC on Fraud on 24-25 November at Awana Genting Highlands, NICS was represented by its Chairman and Deputy Chairman at the workshop.

In January 2007, to start off the new year NICS held its 2 nd Cocktail Reception for its members and invited guests on 25 January at Hotel Maya.

NICS also had its first kickoff meeting with MII on 6/3/2007 to discuss co- organizing a Regional Seminar on Fraud and Anti Money Laundering tentatively to be held in August 2007. NICS was represented by its chairman, Deputy Chairman and the Exco member from the Training and Education Sub-Committee. NICS would also like to inform the he next meeting has been set at 11/4/2007 together with representatives from BNM. In March, NICS also organized a visitation to PUSPAKOM for its members on 13/3/2007.

NICS would like to announce that we are co-organising a Medical Seminar on Assessing Physical Disability together with the Healty Aging Society and the Medical Faculty of University Putra Malaysia on 21-22 April at the Sheraton Imperial Hotel

NICS is also going to be presenting the completed TPBI Project Paper to the JWC on Fraud in May 2007.

NICS Exco would like to take this opportunity to express our special thanks to NIAM under the leadership of YM Tunku Dato' Ya'acob Bin Tunku Abdullah for all their assistance, guidance & support rendered to NICS since our inception.

To Malaysian Re for all the sponsorships on the education training programmes organized by NICS all these years which have enabled more members to participate.

Thank you.

MELVIN OH,

CHAIRMAN

29th March 2007