The Company shall receive payment (i.e. Premium and Cash Collateral) before the IG is release.
Limit Per Guarantee
The maximum IG that an insurer can underwrite is RM250,000.00 per employer.
Letter of Indemnity (LOI)
LOI in the approved wording must be obtained from the Employer.
All LOI must be dated and signed prior to or concurrent to the date of issue of the IG. Otherwise, the validity of the indemnity and/or third party guarantee(s) could be in doubt.
For IG in excess of RM25,000.00, employer is required to provide cash collateral security of not less than 20% of the sum insured of the IG in addition to the LOI/ counter guarantees.