Page 136 - Special Topic Session (STS) - Volume 3

STS523 Shazura Z. A. et al.
expedited, thus, enabling REs to pro-actively reach out to the beneficiaries,
who are unaware of the insurance policy/takaful certificate of deceased
holders. This improves the confidence of policy/certificate holders on the
trustworthiness of insurance and takaful industry in Malaysia. Hence,
policy/certificate holders can be assured that their inheritance are in good
hands and will be distributed to the rightful beneficiaries upon death.
Nevertheless, there are risks associated with the implementation of TIDeS,
due to the possibility of occurrences of incorrect death status in JPN’s
Registration of Death, arising from the declaration of death by court for a
missing person and the registration of death for a deceased accident victim
using stolen NRIC. The Bank may wrongly disseminate information to the REs,
given that a person who is alive is reported as deceased by JPN. This is in
addition to reputational risks involving the credibility and professionalism of
the Bank. To mitigate the risks associated to this, the Bank through the policy
issuance on Data Checking Arrangement with JPN – Guidance on Data
Submission dated 12 April 2019, requires REs to establish a framework
providing for an appropriate communication strategy in approaching the
beneficiaries of a deceased policy/certificate holder given the sensitivity of the
information relating to the death status and also the possibility of any
inaccurate death status of such policy/certificate holder. REs also must not rely
solely on the death status obtained from the Bank and should conduct their
own due diligence to confirm the accuracy of the death status of a
policy/certificate holder after obtaining such status under this arrangement
and before making any communication with the beneficiaries of such
policy/certificate holder.

2.1.1 Updating the 12-digit NRIC Number of Customers of REs
The benefits of leveraging on the alternative data sources have proven to
be a value-add to increase the data quality at the Bank. In the Bank’s attempt
to further enhance data quality of statistical reporting by the REs in parallel
with the request by the REs for the Bank’s assistance via Financial Institutions
1
Steering Committee (FISC ) to obtain the 12-digit NRIC numbers of their
borrowers and accountholders from the Bank or directly from JPN, the Bank
in early 2019 has embarked on a one-off exercise in updating the 12-digit
NRIC number of customers of REs, who initially registered their identification
(ID) number using the non-12-digit NRIC number while performing financial
transactions with the REs.
This one-off exercise requires the REs to submit information on the names
and old Individual NRIC/Army ID/Police ID/birth certificate numbers of their

1 FISC is a high-level oversight committee and communication platform between the industry
and the Bank.

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