The Malaysian Takaful Association (MTA), the Life Insurance Association of Malaysia (LIAM) and Persatuan Insurans Am Malaysia (PIAM) – together with the Personal Data Protection Department of Malaysia (PDP Department) – have launched a Code of Practice on Personal Data Protection for the insurance and takaful industry, they announced in a joint statement.
Chairman of the Task Force on Personal Data Protection Act for the insurance and takaful industry, YBhg Datin Veronica Selvanayagy said the Code is the result of an industry-led effort to establish strict procedures to safeguard the use of personal data in the life insurance, general insurance and takaful businesses.
Following the implementation of Malaysia’s Personal Data Protection Act (PDPA) in November 2013, the insurance industry had formed a task force to look into its standard operating procedures and compliance framework to abide by the seven principles pertaining to information handling, outlined in the Code of Privacy Practice in relation to the PDPA.
The principles are General Principle, Notice and Choice Principle, Disclosure Principle, Security Principle, Retention Principle, Data Integrity Principle and Access Principle.
“The personal information of customers and policyholders under life insurance, general insurance and takaful plan will be kept for decades. It is therefore important that we establish strict procedures to safeguard the use of this personal information,” Ms Selvanayagy said.
“The Code sets out the best practice to harmonise the principles to safeguard personal information that is collected and processed and would only be disclosed to approve parties. It also addresses the rights of policyholders or data subjects and the penalty that will be imposed on failure to comply with the Act,” she added.
Apart from the requirements under the Code of Privacy Practice, all insurers and takaful operators have put up privacy notices to their policyholders and potential customers through various media such as websites, letters and announcements.
Insurers and takaful operators have been training their staff and informing customers and policyholders of the importance of the Act, complementing the nationwide publicity efforts of Malaysia’s PDP Department.
“Moving forward, with the implementation of the Code, LIAM, PIAM and MTA hope that it would further elevate the service standards and professionalism of the insurance and takaful industry which will generally lead to better business practices, instil faith in the minds of the customers and ensure the public’s full trust and confidence in the integrity of the industry,” said the statement.
The Code is available on the websites of MTA, LIAM and PIAM.