While
there is no record to ascertain when the insurance loss adjusting
profession first set foot in our country, it is believed the first
insurance surveyor firm was established in the 1930’s. The
few firms existing at that time were essentially engaged in marine
losses. Other classes of insurance claims were then dealt with
by the insurance companies’ officials.
Loss
adjusting firms dealing with fire and general losses in Malaysia
took root probably in the 1950's. In the early days anyone could
become a loss adjuster and this profession came under the purview
of the government probably after the Insurance Act 1963 passed
through Parliament.
The
loss adjusting profession was further regulated and by the early
1980's all adjusting firms had to be corporatised.
The
formation of AMLA [ Association of Malaysian Loss Adjusters (1981)
] was mooted during this period.
During that period a group of loss adjusters realised the need
to have an organisation to represent them, and at the same time,
felt the necessity to develop loss adjusting into a profession
with a professional body serving individual loss adjusters. With
the encouragement of the then Office of the Director General of
Insurance, a protem committee was formed in 1981 to draft the
Constitution. The Association was eventually registered with the
Registrar of Societies on 25th October 1982.
The
early years of AMLA were faced with difficulties. There were vigorous
debates between the opposing interest groups within the adjusting
fraternity accompanying the birth of AMLA. Being a new association
representing adjusting companies, it did not gain recognition
immediately as a single body representing the entire loss adjusting
profession. This was due principally to the fact that insurance
companies and other parties had been too used to dealing with
loss adjusting companies individually and needed time to get used
to the new channel set up. Within the membership, there were also
initial difficulties in reaching consensus on the priority of
the objectives to be attained and the manner of attaining the
objectives.
Despite
the difficulties, AMLA persevered on a slow but steady basis.
Over time, the insurance industry, the insurance regulatory body
and other relevant parties began to understand AMLA and gave invaluable
cooperation and guidance to achieve the objectives of the projects
carried out.
AMLA
in the first decade of its existence managed to resolve a number
of problems faced by the loss adjusting profession in Malaysia
and created a more disciplined and professional approach in loss
adjusting work.
AMLA
has succeeded in moving ahead effectively in the fields of education
and training and initiated cooperation with the Malaysian Insurance
Institute (MII) and contact with the Chartered Institute of Loss
Adjusters (CILA) of United Kingdom to facilitate the development
and advancement of the profession and to train more to become
qualified loss adjusters.
AMLA
is most active in the field of training, where over the years
several seminars and on site training classes have been conducted
to develop the skills of loss adjusting amongst the members and
their adjusting staff.
In
its endeavor to maintain a high standard of professionalism, AMLA
in 1988, established a Code of Ethics for its members.
In
its continuing efforts to promote a high standard of professionalism,
it was felt that competition of business among its members should
be on efficiency rather than by undercutting fees.
In
the initial first 10 years, AMLA has managed to organise loss
adjusting into a disciplined and well respected profession. It
has also effectively represented the interest of its members in
dealing with matters affecting the profession as a whole. The
principal issues pursued by AMLA include the following:-
1)
Delay in settlement of adjusters’ fees by some insurance
companies.
2)
In-House Adjusters.
3)
Full acceptance of the important role of loss adjusters in claim
settlements as is practised in all establishment overseas insurance
markets.
4)
To conduct professional loss adjusting examinations and achieve
recognition of a local Diploma/Associateship gained from these
examinations.
All
the above took place in the first 10 years of AMLA's childhood.
In
the second decade (in AMLA's teenage years and at times troublesome
years as with all teenagers), AMLA built upon the foundation of
the early years. By this time AMLA has become a mandatory association
under the purview of Bank Negara Malaysia (Central Bank of Malaysia).
In
the first half of the second decade AMLA built on the foundation
and continued in addressing the on-going issues of its early years
to become even more disciplined and organised. What was more obvious
was that members had become more cohesive and generally could
act as a unified body except on one or two issues. AMLA had by
then gained the recognition of the insurance industry in Malaysia
as well as CILA as the single body representing the loss adjusting
fraternity in Malaysia. This pursuit for recognition by AMLA is
not unique to Malaysia. At that time, the pursuit for recognition
by competing adjusting bodies as a single representative body
for their industry was also on-going in United Kingdom and Australia.
Eventually CILA became the sole adjusting body for United Kingdom
adjusters in the early 1990's and the Australasian Institute of
Chartered Loss Adjusters
(AICLA) came into being for Australia in 1997 as the sole adjusting
body.
In 1996 the Insurance Act passed through the Malaysian Parliament
and it was gazetted and came into force on 01.01.1997.
AMLA
members have become financially stronger and management strengthened
through better governance relating to financial reporting and
appointment of auditors. The results of the regulatory role of
the Bank Negara Malaysia are obvious to all.
Industry
issues were constantly addressed and consultation/dialogue were
regularly carried out between AMLA and Bank Negara Malaysia. AMLA
was able to work positively with Bank Negara Malaysia, which provided
AMLA with the opportunity to voice the concerns of our industry
on the many issues discussed.
Matters
like necessary standard minimum qualification for adjusters, minimum
paid-up capital, standardisation of format for adjusters reports
on motor, and development of the Industry Master Plan were dealt
with.
In
loss adjusting business where technical expertise and professionalism
are paramount, AMLA had worked hard to produce a structured education
and training programme to enable adjusters to receive basic training
through to diploma level in insurance and hence forth to become
fully qualified Chartered Loss Adjusters. In this regard, AMLA
is thankful for the assistance given by the Malaysian Insurance
Institute (MII) and CILA.
We
are proud that the first Malaysian qualified as a Chartered Loss
Adjusters in 1983 and by 1997 there were 16 Malaysians CILA members
and today we have about 25 CILA members and many student members.
On
the international platform, AMLA is now well known globally and
has been invited by CILA to become a founding member of the International
Federation of Adjusting Associations (IFAA). The other members
are CILA of UK, AICLA of Australia, Canadian Institute of Chartered
Loss Adjusters, the European Federation of Loss Adjusting Experts
of Europe, the Loss Adjusting Association of Japan, the Insitute
of Loss Adjusters of Nigeria, Loss Adjusting Association of Singapore,
Institute of Loss Adjusters of South Africa, National Association
of Independent Insurance Adjusters of US.
IFAA's mission is to promote the role of loss adjusting associations
and their members:
-in
creating a positive business environment
-in forming and influencing public policy
-in supporting members with appropriate services
- and to disseminate best practice and
increase the professionalism of loss adjusting associations.
It
intends to protect the interests of the adjusting profession as
a collective grouping within the insurance industry involved in
the specific area of claims and to speak with a single voice and
from a position of collective strength.
AMLA
believes it can benefit from being a member of IFAA by learning
from the experiences of other countries, tapping into a resource
centre which is being developed, encouraging continuing professional
development, participating in research projects and study groups
on global issues, facilitating exchange of information, encouraging
comparative ethical and disciplinary standards and so on. IFAA
restricts its member to one adjusting association from each country
and AMLA is the Malaysian member.
The
20th Anniversary of AMLA is a significant year for AMLA. It is
a milestone, which marks passing of AMLA into adulthood and maturity
and the passing of a generation.
AMLA
started 20 years ago seeking recognition and today we are on the
map and known globally.
It
is also timely that AMLA take a re-look at itself to check that
it is still relevant in this new millennium. AMLA was born at
a time when the adjusting industry was poised to take off into
the present form and the interest of the companies or firms was
the issue that took centre stage. Thus a trade association in
the form of AMLA was formed. Those who were present in 1981 would
remember that the competing interests at that time was whether
AMLA should be an association of individual members or an association
of adjusting companies.
AMLA
will have to review its position in the present business environment
and situation. Globalisation, mergers and acquisitions, consolidations
and liberalisations have affected the insurance industry. By year
end 2003, we will see further mergers of insurance companies in
Malaysia. There will be a reduced number of principals our members
can work for.
How
would this affect our members? Will our members also merge in
the near future? Will we have fewer members in the near future?
If so, how effective can it exists for the few? How should our
industry respond to the changes around us? AMLA does not know
the answer. It is merely an association and it can only act in
accordance to the wishes of its members provided the members let
the association know their wishes.
Some
of the reality around us is this. AMLA is a trade association
and its members are to be represented by the owners of the member
companies and each member can only have one representative. Some
of the owners are nearing or at retirement age and may or may
not be interested in the affairs of the industry. Some of the
representatives sent to AMLA meetings may be interested in our
industry but they are impotent to drive the issues as they are
not the owners or ultimate decision makers in their companies.
The other situation is that there may be a number of very experienced
and qualified adjusters working in a single member company but
only one representative can be sent. AMLA therefore will not have
the benefit of contribution from many able adjusters in the industry.
It is easy to say we can co-opt them into sub-committees to tap
these resources. But would they want to serve if they do not feel
they belong to a trade association?
These
are the challenges ahead and a real solution must be found. It
must be stressed that AMLA's continued success will depend on
more voluntary participation by members. This is one of the reasons
why AMLA must look at its relevance.
In
contrast, in the formation of the pro-tem committee for AICLA
Malaysian Branch there is no shortage of volunteers. CILA is also
going ahead with starting a chapter based in Malaysia to look
into membership interests in Asia as we in Malaysia have the largest
number of CILA members outside of United Kingdom and Australia
and there will be again no shortage of volunteers.
AMLA
have come a full circle and we are again required to look at whether
AMLA can serve the interests of individual professionals.
AMLA
has in the last 20 years dedicated a lot of efforts towards building
up the pool of qualified adjusters in Malaysia and has been involved
in every facets of training and education. It has successfully
brought together speakers from all over the world to share their
knowledge and experience with our adjusters. We have also put
into place the Basic and Intermediate Course in Loss Adjusting,
which is now administered by the MII. All lecturers are from our
fraternity and we share our knowledge with the insurers and brokers
in the seminars and lectures we conducted. Individually many of
our adjusters are making sacrifices to contribute back to our
industry in term of giving time and effort to teach and train
our next generation of adjusters. AMLA must acknowledge these
individuals.
AMLA
has achieved the most in the field of education and training and
is second to none in this region.
The
success of our profession is dependent on technical and professional
knowledge and if AMLA cannot to date serve the needs of individual
loss adjusters to progress further professionally, then the growth
of local CILA and AICLA groupings will become inevitable.
AMLA
is indeed at a cross road and it must find its correct destiny
and regain relevance in our industry and fraternity. AMLA can
continue to play this role so long as it can wear an impartial
hat to create value for all members.
The
future of AMLA is in the hands of all its members and AMLA looks
forward to the full support of its members to help shape its destiny.
AMLA
–
OBJECTIVES
Objectives of Association of Malaysian Loss Adjusters (AMLA)
It was formed to register insurance adjusters licensed by the
Government to regulate the practice of insurance loss adjusters
in Malaysia.
To promote, develop and establish a sound loss adjusting
profession in Malaysia.
To co-operate with other similar associations in other part of
the world
Liaise with the professional organization in the insurance
industry in Malaysia
To represent its members in matters affecting their interests in
the Insurance Industry
To monitor and regulate its members to adhere to all Articles and
Rules of the Association and to comply with the provisions of all
laws in Malaysia, in particular, the Insurance Act
To work in conjunction with any legal body or association for the
amendment or alteration of any law relating to loss adjusting.
The Association of Malaysian Loss Adjusters (1981) is the
association of loss adjusters approved by the Minister and is
registered as a society under the new Section II of the Societies
Act 1966. The membership of the association is on corporate basis,
ie, it is confined to companies carrying on the business of loss
adjusting in Malaysia.
Section 20C(1) of the Insurance Act 1963 requires that no person
shall act or hold himself out as an adjuster unless he is the holder
of a license granted by the DGI and is a member of an association of
adjusters approved by the Minister (of Finance).
The following are exempt from the above ruling :
advocates and solicitors and other professionals who act or
assist in adjusting insurance claims incidental to the practice
of their professions
adjusters of maritime losses, and
employees of insurance companies who, in the course of their
employment, act or assist in adjusting insurance claims but who
do not hold themselves out as adjusters
The main objectives of AMLA are as follows:
the promotion of the establishment of a sound loss adjusting
structure in Malaysia in co-operation and consultation with the
DGI
the promotion and representation of the interests of members in
or connected with Malaysia by all means and methods consistent
with the laws and Constitution of Malaysia
co-operation with other similar associations elsewhere in the
world
work in conjunction with any legal body or association or any
similar body appointed or to be appointed for the consideration,
framing, amendment or alteration of any law relating to loss
adjusting
History of the Chartered
Loss Adjuster
The profession started in the UK in the late 17th Century after the
great fire of London. By the 18th Century, Insurers were engaging
“Assessors” to act for them. These “assessors” were a grouping of
prominent professionals from various fields – namely, Chartered
Surveyors & Architects. The term “Adjuster” appears to be first used
in 1941. In 1961, The Chartered Institute of Loss Adjuster (CILA)
was formed, paving the way for the formation of the Loss Adjusting
profession.
The Australasian Institute of Chartered Loss Adjusters (AICLA) was
formed in 1997. It is a result of the merger of all three major
Institutes in Australia and New Zealand, being:
Australian Institute of Loss Adjusters (AILA)
Chartered Institute of Loss Adjusters
Australasian Division (CILA)
Institute of Loss Adjusters of New Zealand (ILANZ)
In Malaysia, the profession can first be
traced back to the early 1930’s when the first Loss Adjusting
companies were established. Today, Bank Negara Malaysia regulates
the Loss Adjusting Industry in Malaysia. The Association of
Malaysian Loss Adjusters (AMLA) is the Statutory Association which
all-practising companies must be members in order to carry out the
business of loss adjusting. There are currently 40 member companies
in Malaysia.
