This is a series of true events…There are tales of things that go bump in the night! There are even scarier ones that go bump in the day ! Leaving you in a financial mess.

Our first story starts….when my father was diagnosed with leukaemia, he was given only 6 months. During his hospital confinements, there were occasions when he related weird dreams of apparitions in white. There were also large boulders with faces of these apparitions. He will wake up suddenly only to find his dreams continued when he went back to sleep. We could not understand the interpretation for his dreams.

He was advised to prepare his Will which he did through a lawyer friend of his. Upon his death a few months later, I visited the lawyer. To my horror…he had only included 2 items in the Will – his apartment and his car! The lawyer left out another property which I shared with my father and my father’s bank accounts. This meant that we had to go through the hassle of applying for a letter of distribution which incurred wastage of time and money. All the lawyer could say was “Sorry”.

It took us slightly more than 2 years and some running around to various agencies before we were able to sort it all out! I approached Amanah Raya Bhd for assistance as it was under the small estate claims. My siblings were also dragged into this hassle.

I do not wish this nightmare to happen to anyone. It pays to be extra careful when planning for the distribution of estates. It is not an activity to be taken lightly!

Some years ago, a friend of mine was driving along Jalan Ampang when he stopped at a traffic light. Within moments a motorcyclist rammed into the left back of his car damaging the indicator light. The impact was so great, the motorcyclist was flung to the front of the car. The motorcycle was almost totally wrecked. My friend alighted from the car to check on the motorcyclist who was writhing in pain near the front bumper. Apparently, he had fractured his right fibula. Out of compassion, my friend used his new tie to tie a splint around his right leg. After contacting the employer of the motorcyclist, he drove to the general hospital. During the journehy, the motorcyclist kept apologising for the accident while still in pain. Apparently, he was trying to best the traffic lights while making a right turn when he collide into my friend’s car.

At the emergency ward he met up with the employer. After explaining the situation, my friend left the hospital. The employer assured my friend that since it was the motorcyclist’s fault, no action would be taken. Fortunately, my friend had the presence of mind to make a full police report. Although it was only a damaged indicator light, he insisted the police take pictures as well as record of the accident.

Four months down the road, my friend received a letter from the motorcyclist’s lawyer summoning his appearance in court. My friend’s insurer subsequently contacted him to pay a visit to the insurer’s legal advisor. He described the whole accident and provided all related information. After assessing the information, my friend appeared in court with the legal advisor. Due to the thoroughness of the documentation and the nature of the accident, the case was dropped without any financial loss.

My friend went through a period of mental torture leading up to the court appearance. His presence of mind to document the whole process accurately saved him from a would be nightmare! It is always prudent to ensure that all accidents are duly reported and documented to protect yourself from unnecessary legal suits especially where it involves bodily injuries.

In 1998, a client of mine, Mr Liew, was admitted to fairly established hospital in KL for what seemed like acute appendicitis. Upon investigation, he was diagnosed with left kidney necrosis and had to be operated upon immediately. After the surgery and while recuperating, the claims was processed and paid.

But, Mr Liew was not recovering even after 2 weeks. He developed high fever and was delirious. After a family members and friends discussion, we decided to send him back to his hometown to seek further medical advice. He was admitted to Ipoh Specialist Centre where he underwent more investigation. It was discovered that the left kidney was not removed and had begun to putrefy. This was the cause of his high fever which did not seem to subside. Subsequently, he underwent another operation. This time a left radical nephrectomy which is the total removal of the left kidney. He was able to walk about within 5 days and was promptly discharged. Had he delayed it might have caused him his life. He was 29 years old then.

A businessman once related an incident that happened in his hardware shop in Setapak KL in the early ’90s. It was in the late afternoon when there were no customers in the shop, 2 would-be customers walked in to inquire about some machineries exhibited in his shop. These were portable machines costing a few tens of thousands ringgit each. Suddenly, they flipped out knives and herded the businessman and 2 of his staff into the glass cubicle office. Meanwhile, one of them pulled down the shutter and proceeded to ransack the office for cash after tying up the businessman and his staff with wire. They were not hurt as they were compliant.

Eventually, they left the premises after looting cash and a couple of portable machineries. The businessman and staff were released only after his partners and co-workers returned.

After making a police report, the next day he proceeded to file for insurance claims as they had bought a buglary policy for the business premises. Soon the adjustors came and took pictures and filed a report. Not long thereafter they received a reply from the insurance company, and to his horror, this burglary was not covered. The reason given was the policy they bought covered only forcible, violent and visible entry. This incident happened when the premise shutters were open. In addition, there was no signs of forcible, violent and visible damage to gain entry. This in fact is defined as a hold-up. Thus, the insurer declined the claim.

Not all policies are designed the same. Some insurance companies only cover basic burglary accompanied by forcible, violent and visible entry to premise. Whereas, certain other insurers may provide a comprehensive cover which include full theft. This will partly explain the cost differential between different insurance company’s policies It pays to understand the insurance contract conditions before any calamities.

During the last heavy rains in Klang Valley which resulted in flooding in various parts of the city, a relative’s 1 year old MYVI was caught in a flood. The water rose so quickly that there was no time for her to move the car to higher grounds. The car was submerged almost to the roof in the flood waters. After the flood subsided, she had to arrange for a tow truck to tow the car to the workshop. It was then that she discovered the motor insurance policy did not include the extension for flood. As such, she could not make a claim but had to pay out of pocket. The repair bill came up to RM6,000.

For a person who had just started working, this made a big dent in her savings as the repairs was a few months of her salary. While we may want to save on insurance premiums, it pays to understand the policy contract so as to avoid leaving out important risks. Unlike life insurance contracts, general insurance contracts are based on the concept of indemnity. Thus there are various risks or perils that may need to be covered through extensions. Leaving out some of these perils may save some premium ringgit but may end up losing more at the end. This is a classic case of “penny wise, pound foolish!”

Gary was a fortyish successful businessman. Having spent years building the business with his brothers, he had accumulated more than a dozen landed properties around Klang Valley. Some of these properties were in very reputable addresses. Even with his wealth, he led a frugal lifestyle.

One day a few years ago, as he was driving, he suddenly lost his sense of direction and could not reach his intended destination. As it was during the weekend, he waited until the first working day of the following week to visit his doctor. After undergoing some tests, the doctors informed him that there was a tumour in his brain. He had to undergo treatment as soon as possible. Due to the location of the tumour, he had to undergo chemotherapy. He responded very well to the treatment but had to restrict his diet. 

It was then that a financial advisor was referred to him to help review his Will. He had young children between 2 to 9 years old. His earlier Will had named his spouse and children as joint beneficiaries of his estate. The advisor had suggested that it may be better to Will some of the properties directly to the spouse so that she may manage the properties without unnecessary encumberances. On the other hand, he may also set up a Trust as his children were still very young. But he wanted to retain the original format as he was confident of recovery. A guardian for the children was appointed. 

A few months after, his condition deteriorated as the tumour had returned with a vengence. Soon he lost his sight followed by complete loss of memory before he passed away. Cancer is a very scary illness especially when it is cancer of the brain. In Gary’s case, it was a slow dying process as he began to lose his faculties one by one. The family had to begin picking up their lives after he was gone. When Gary was recovering after the chemo, he had confided that should he return to health, he would learn to enjoy his hard earned wealth with his family. He regretted choosing a spartan lifestyle. Life sometimes does not afford us a second chance.

Meanwhile, the process of sorting out the estate was complicated by the nature of the distribution of the properties in the Will. Although Gary insisted on a general Will, a detailed Will specifying the distribution of each property separately or a Trust may have worked better in ensuring the children’s future. This is an example where a general Will may not be a good idea. As the surviving spouse is the sole guardian of the estate, the children’s share of the estate is not guaranteed if something happens to the surviving spouse.

Sometimes it can be dangerous driving alone in the dark of night in remote areas far from human habitation. And it can be a scary experience too. Since this is the season of Halloween, we thought we would like to share a scary but true experience….

An architect friend related this story many years ago. He was on one of his project trips in the East Coast when he found himself driving home alone in the dead of night. After more than half an hour of driving in the dark with jungles on both sides, he detected an aroma in his car. Fearing for the worst he looked into his rearview mirror and saw a female figure in red at the back seat!! He froze in his seat but managed to continue driving. He started shouting profanities as he had heard an old wives’tale that shouting profanities will scare away the spirits. Apparently it worked for soon after shouting the vision disappeared. But…it was short-lived! Soon he heard some noise on the roof of the car followed by flowing red cloth sliding down the windscreen. The same apparition appeared, this time sitting on the bonnet of his car!! He stepped on his accelerator but the apparition remained unmoved on the bonnet. So he started shouting profanities again and for awhile the apparition disappeared only to re-appear again a few times over. He was sweating cold sweat all over. He must have been driving for more than an hour when to his relief he saw lights coming from houses in front. He sped towards the houses and stopped right in front of one of them. An elderly man came out and on seeing my friend’s frightened expression, exclaimed “You must have seen her too!”. According to this elderly man, this spirit is quite commonly seen by those who drive alone at night along that stretch of the road.

My friend was lucky he did not meet with an accident despite speeding. And he vowed never to drive alone again in the dead of night in remote areas.

“DRIVE CAREFULLY THIS HALLOWEEN SEASON. YOU MAY NEVER KNOW WHO MAY HITCH A RIDE!!”

In 2011, a friend was driving home around 7pm in Ara Damansara when his car was bumped lightly from behind. He carried on driving for a distance but noticed from the rearview mirror that the car behind had pulled up to the side of the road. Fearing something may have happened to the driver, he too stopped his car about 80 meters away. He proceeded to walk back towards the other car. Halfway the doors opened and out came 2 burly men. They ran towards him. My friend quickly turned back to try to get back to his car. Before he could reach his car, he was pushed onto the curb. The 2 men got into his car, a Honda CRV, and drove off.

My friend called his wife who was nearby to pick him home. At home, they tended to his wounds which included bruising of the left shoulder and hand, the left side of his head as well as the thigh. About an hour later, he went to the police station to make report. He was surprised to hear an earlier police report had been made relating to his car. Apparently, his car had knocked down a pedestrian in Puchong. His timely police report absolved him of the later accident involving the pedestrian. The car was never found. But he managed to claim for the loss of the car in full.

It is important to make a report as soon as reasonably possible. While this may give the police an early lead, it will also prevent any hassles especially when it involved pedestrians.

There are many people who travel annually but may not be aware of potential accidents that may disrupt their well planned holidays. The following story happened about 8 years ago.

This family of 4 was on one their annual holidays in Australia when something unexpected happened to their 5 year old daughter. They frequently visited their friends while on holidays to catch up on the latest family happenings. While the parents were chatting away, their children played with the family pet dog. For no obvious reason, the dog suddenly lurched at the daughter and bit her on her face. Luckily for her, the dog stopped immediately as it was probably a response due to an agitation.

They immediately brought her to a family clinic where she was given a few stitches and an injection. The doctor advised that since she is still very young, the bruises would heal fully without any scarring. Meanwhile the medical bill came to quite a few thousand ringgit. Upon returning to Malaysia, a claim was submitted together with the medical bills and a doctor’s report. The travel PA paid for all the medical bills.

While many do not anticipate any untoward incidents when on holidays, unforeseen happenings do sometimes occur like food poisoning, falling sick, skiing accidents, ruptured blood vessels or even heart attacks. It is also common to experience disruption in travel like delayed flights, adverse weather conditions, missed flights, loss of documents, and of course the perennial problem of loss of baggage. All theses scary inconveniences can be mitigated by making sure you have a travel PA with you.

One evening I received a call from a friend of mine informing me that our friend Alex’s daughter was admitted to a hospital 2 days ago. Apparently, she collapsed while in her college. Upon admission, she went into a coma. The consulting neurosurgeon who was from another hospital did not attend to her all this while. Due to past experience, I advised Alex to send his daughter to another hospital where there was an in-house neurosurgeon. I was fearing for the worst.

We managed to admit the daughter the other hospital around 8pm the same day. She was immediately sent for an MRI scan. We waited for the results while we attended to the daughter. Not too long after, the neurosurgeon met with Alex and his wife. He broke the news that the daughter had a ruptured brain aneurysm and the blood had clotted. She was basically brain dead and would depend on life support. The neurosurgeon advised the now distraught parents that it would be better to let her go as she would remain in a vegetative state even if she continues to breathe. They were advised to make a decision with the rest of the family members. We left the ICU to meet up with their 2 elder sons. It was a very traumatic moment as she was their only daughter and sister, and she was only 17. After a short deliberation, they decided that the best decision for the daughter was to let her go. Sometimes we have to make painful decisions for those whom we dearly love. The pain was almost palpable when Alex informed the doctor of their decision. We stayed beside her to watch her last breath. 

The next day we proceeded with the final rites. She was cremated 2 days later.

Aneurysm is a silent illness linked to the weakness of the walls of the blood vessels. This could be hereditary or due to an acquired disease. I have personally encountered many cases of ruptured brain aneurysms involving both young and old. Many of them did not make it but one is still surviving healthily. It is important to note when a person collapses in a coma, the comatose person should be immediately sent for investigation such as MRI scans, CT scans etc. 2 of my friends had survived because the doctors responded immediately by investigation followed by surgical intervention to release the blood.

Sickness and death afflict both young and old. At times it comes without any warning. It would be wise for us to take precautions by paying attention to our health and planning for the financial implications of the cost of healthcare. As the saying goes “Prevention is better than cure”.

Most of us would jump into a good investment opportunity. Opportunites do abound but some of them are too good to be true! 

A friend of mine shared an investment opportunity based on gold trading many years ago even before all the current craze. The projected returns was in the 20 percentile and it was supposed to be backed by physical gold. In order to convince me, my friend and his wife sunk most of their savings into this scheme. They were very confident as one of the directors of this company was a former boss of his wife. After much coersion, I relented and invested a few thousand ringgit. 

Initially, we received good interest every other month. Soon it dried off and we were given all sorts of excuses when we tried to recoup our capital. Slowly it became obvious we were not going to collect back anything. While I lost some money, my friend lost over half a million ringgit. This incident happened when I was yet to obtain my financial planning education and license.

There are many such schemes in the market that have come and gone, and many have lost large amounts of money. Many had squandered away their life-savings. Some had even resorted to taking their lives as they see no way to recover their hard earned savings. It pays to scrutinise any investment opportunities as many are based on very optimistic outlooks. ALL investments comes with attending risks. Many a times investors do not pay attention to such risks as geographical risk, political risk, technological risk, moral risk apart from all the other common attending risks. If an investment sounds too good to be true, it probably is!

The adage of not putting all your eggs in one basket holds true for all investment no matter how good the return is. Investors must realise and believe there will always be new opportunities. Rather than taking unnecessary risk, exercise patience and restraint instead of giving in to greed. Make sure your investment ringgit will “live to fight another day”. 

“HAPPY INVESTING”…and may you not live one of those scary investment tales!

We all look forward to a good holiday especially one that turns out smoothly. But not all holidays are trouble free. Occasionally one may experience flight delays, lost baggage, lost/stolen documents, injuries and a host of others. 

During one such trip to China during the winter months, we experienced a turbulent transit flight. We landed safely and waited for the return flight which was supposed to be a few hours away. About 2 hours in to waiting and after collecting our boarding pass, we were informed the flight will be delayed due to strong winds. Another hour later we were finally informed the flight was cancelled due to snow. The next flight out would be the following morning. Most of the passengers were unhappy but were unable to do anything as this was a weather condition which was beyond control. The airline informed us we would be provided with dinner and accommodation at a hotel nearby. But for those who had connecting flights in KL or meetings to attend the next day, it was a great inconvenience financially and timewise. The airlines would not compensate for such losses.

The next morning, we boarded the flight and landed in KL incident-free. As we have always practised never to leave home without travel insurance, we proceeded to organise the relevant documents and information before submitting the claims to the insurance company. Not too long after the submission, we received compensation sufficient for yet another trip. For those who take Travel PA lightly, they would have to bear the losses personally. Why take unnecessary risks when a comprehensive Travel PA is usually between 30 to 70 ringgit?! And best of all, you have peace of mind!

Aileen was a forty something bachelor running her own consultancy business. Apart from her aged mother she did not have any other dependants. She was in the process of renovating her new office when she fell ill. After consulting a doctor and upon a detailed investigation, she was diagnosed with a brain tumour. She had to put her business plans on hold and focus on her treatment which included an operation followed by chemotherapy. Luckily she had close to half a million ringgit worth of critical illness policies. It was close to 2 years before she was healthy enough to re-start her business, by which time she had already almost used up all the insurance monies for treatment as well as to support her daily living expenses. 

Just as she was about to open for business at her newly renovated office, the tumour came back with a vengence! As her funds were by now depleted, she checked herself into a government hospital. Medication was expensive and she had to pay for them eventhough being treated in a government hospital. Soon she had to withdraw her EPF as well. Although we thought this would seriously affect her retirement when she recovers, but the cost of treatment had to come first. About half a year later she lost the battle. Her mother was left all alone. 

Life is unpredictable! Many of us would have responsibilities and financial obligations to ourselves and our dependants. Eventhough it may be a frightening exercise, we have no choice but to plan for the eventualities as best we can. As medical expenses are constantly escalating at a faster rate than household inflation, it can be a daunting exercise. According to AKPK, a large percentage of brankruptcy is due to medical reasons. And this is unlikely to improve in the near future.

Once I was requested by a friend to meet with his wife to advise her regarding a motor insurance claim. I drove to Seremban after work to meet the couple at their house. She related an incident which occurred earlier that day. She was driving at about 11am when she approached a cross-section. As she was engrossed in her thoughts, she was not aware the traffic light had changed to red. At the middle of the junction, she knocked into a motorcyclist coming from another direction. The motorcyclist was injured and had to be sent to the hospital. 

Normally, this would have involved a police report before filing a claim. But in this incident, my friend’s wife had insisted on reporting it was her negligence that had caused the accident. She wanted to help the motorcyclist get compensation for the treatment as well as the injuries. My friend was appalled at the idea, thus, the reason for calling me!

While it is commendable that she wanted to take responsibility for her negligence, she cannot dictate the conditions of the Motor Insurance Contract. Even though motor insurance contracts include liability to third parties for bodily injuries or damage to properties, the conditions and quantum of compensation is subjected to the legal process. It is common for both the negligent as well as aggrieved parties to arrive at a fair compensation. The insurance company concerned also have a legal recourse to the amount of compensation. Insurance contracts are designed to be mindful of potential for moral hazards which can give rise to abuse. For example, in the event of an accident involving the household members of the driver or authorised driver, no compensation will be payable.

Most people do not read their contracts, especially motor and fire insurance contracts which are common place. When accidents occur, some may get a nasty awakening, arguing their ignorance of the contract or they may feel cheated. It is prudent to at least review or go through the contracts with the agents to avoid unpleasantness in the event of a claim. By understanding the contracts, we can ensure that the contracts will meet our needs.