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Tuesday, August 25, 1998
PIAM urges firms to fix Y2K problem
KUALA LUMPUR: The General Insurance Association of Malaysia (PIAM) urges Malaysian companies and businesses to counter the Y2K problem to ensure their continued survival.
In a statement, PIAM stressed that claims arising as a result of non-Y2K compliance might not be paid out by insurance firms.
Under a normal situation, it said insurance products were usually developed over a period of time in response to normal market forces, which allowed insurers the time to adapt their products as experience of the risk increased.
Nevertheless, with the Y2K problem, insurers were dealing with a "one-off situation" that could result in insurance claims manifesting themselves over a short period of time, PIAM said.
It said insurers would have to be very specific and clear in their insurance policy wordings in respect of Y2K failures.
The association was currently in the final stages of determining the treatment of the Y2K-related issues with regard to insurance coverage. -- Bernama