• What is Financial Mediation Bureau

    Posted on July 24, 2018 by in what is

    The Financial Mediation Bureau (FMB) is an independent body set up to help settle disputes between financial services providers such as banks or insurance companies with their customers. For insurance disputes such as claim settlement, or refusal to accept your claim etc, you may seek the service of FMB.

    FMB is an integrated dispute resolution centre to redress consumers’ complaints against financial institutions under the supervision of Bank Negera Malaysia with the objective to enhance consumer protection.

    As far as insurance and takaful are concerned, FMB handles all disputes involving claims not exceeding:
    – RM200,000 for motor and fire insurance/takaful;
    – RM5,000 for Third party property damage;
    – RM100,000 for other classes.

    Note that the FMB’s decision is binding on insurers, but not to the policyholders. They can pursue other legal alternatives if they are not satisfied with the outcome of the mediation. The FMB is modelled along the lines of the Insurance Ombudsman of the UK.

    However, FMB will not mediate the following:
    – complaints by insurance agents against their principals;
    – complaints from public against the insurance agents;
    – complaints that have been or are before courts, including complaints from lawyers on the delay by the insurers in executing court awards;
    – fraud cases;
    – complaints received more than 6 months after the receipt of insurers’ decision;
    – complaints y staff of insurance companies against their employers;
    – complaints which are time barred or more than 6 years.

    Policyholders are not charged for engaging the services of FMB as its operation is funded by the insurers. The mediator is renowned person with vast experience in the judiciary.

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