Personal Accident Insurance for Bankrupt

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asked on Jan 1, 2018 at 19:41
by   sha2k18
edited on Jan 10, 2018 at 07:34
Is a bankrupt allowed to get personal accident insurance for RM100,000 above?
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answered on Jan 1, 2018 at 21:41
by   jeff005
edited Jan 10, 2018 at 07:37
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Has the bankrupt reported in to the Insolvency Department (Jabatan Insolvensi Malaysia - JIM)?

There are no differences in Insolvency laws and treatment in Malaysia and Sabah. Sabah is part of Malaysia. There are only 10 T&C extra in Sabah and Sarawak Constitutional Laws with respect to Malaysia.

A bankrupt is insolvent thus have no financial value (negative) value. There is a Deeming Clause in Insurance Laws that a bankrupt has no positive financial value on his life. A bankrupt should not buy any type of insurance coverage unless he or she has reported to JIM and have seek approval from Director General of Insolvency (DGI).

If a bankrupt have reported in to JIM and is undergoing the case management period, one can seek permission to buy new or continues with existing insurance coverage.

A bankrupt who his doing the JIM case management can seek permission to work as Director or in Managerial capacity (except as cheque signatory) - unless Company Laws have been amended recently.
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answered on Jan 2, 2018 at 12:18
by   jeff005
edited Jan 10, 2018 at 07:38
8. Can I remain as director of a company if I have been made a bankrupt?

An undischarged bankrupt is disqualified from acting as a director of a company pursuant to the Companies Act.  If a bankrupt wishes to act as a director of a company, he/she must seek the approval of the Director General of Insolvency (DGI) or grant of leave from the Court.

It is also important to note that except with the permission of the DGI or Court, a bankrupt is not allowed to:
(a) work in the business of a spouse, children or relative; and
(b) enter or carry on any business, either alone or in partnership.


Note:  2 Acts encompass the power/rights of Company Directorship - Insolvency Act & Company Act.
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