Balai Ikhtisas Malaysia

BIM signed a MEMORANDUM OF UNDERSTANDING (MOU) with ORANGE RISK CONSULTING SDN. BHD. (ORC) 31 March 2006 as a smart partnership to develop and improve General Insurance business.

Under this MOU, BIM will outsource to ORC the initiatives to tap the potential of membership base of member institutions. The proposed arrangement is on a 50:50 gross revenue sharing basis. This agreement becomes effective on the date signed and shall remain in full force and effect for one year. At the end of one year, the MOU may be renewed, terminated and/or replaced by another agreement as discussed and agreed.

ROLES AND RESPONSIBILITIES
ORC shall at its own expenses provide 100% of necessary resources and technical know-how for marketing, servicing, administration and production of insurance business. The insurance business for the purpose of this MOU shall consist of the following :-

a. All personal lines classes such as motor, accident and health, medical, householder etc

b. All commercial packages such as fire, money, fidelity guarantee, burglary, employers liability, plate glass etc.

ORC shall provide periodical reporting to BIM on format, type and frequency to be agreed.

BIM shall endeavor to gather support from member institutions to sponsor (or if possible endorse) our marketing campaigns, and liaise, strategic and plan with member institutions for the development of insurance business.

BIM will also provide information, feedback and advice to ORC for the purpose of promoting the insurance business. ORC will also provide and ensure adequate resources to market and service the business. The experience and qualification of the resources is detailed in ORC firm's profile.

PERFORMANCE GOALS
The mutual aim of both parties is to achieve planned revenue and profits and a business plan will be drawn will be drawn-up immediately upon the commencement of this MOU. The parties to this MOU will strive cooperatively to achieve the following :-
• Premium production growth
• Coordinated marketing campaigns supported by member institutions
• Build an effective team to service clients especially claims.

BIM is entitled to the following gross commission : -
• 100% of the commission derived from BIM's existing renewal businesses
• 50% of the commission derived from new business developed by ORC. ORC will retain the balance 50% of the gross commission and will bear all the marketing and servicing expenses incurred in getting the business. Each party is responsible for its own corporate tax.

ORC shall abide by the strict confidentiality regulations that govern the release of information and shall not disclose any information to any third party without the consent of BIM and its member institutions.

BREACH OF MOU
Both parties agree that each shall fulfill its responsibilities under this MOU in accordance with the provision of Law and Regulations that govern its activities. If at any time any of the parties is unable to perform its functions under this MOU, such party must inform the other party describing its inability
to fulfill the requirements of this MOU and establish a date at the earliest convenience to resolve the issue.