Why can’t companies write a friendlier note that’s not so couched in officious words to the point that I’ve to read and re-read it several times in order to understand what they’re trying to say? For example, this letter from one of my insurers that I received just a few days ago.
Okay, after getting over my initial surprise, I gathered from the letter that there is a new piece of legislation in this country which is known as the Financial Services Act 2013 and it will be replacing the Insurance Act 1996 which has been repealed. More than that, I am affected as a policy holder with regards to the appointment of Trustees.
But the next two paragraphs were befuddling to me at first read. You’d better try and read it yourself and see whether it’s understandable easily:
Under FSA, nomination by a Non-Muslim Policyowner shall create a trust in favour of the nominee(s), if the nominated person(s) is the spouse or child and if there is no spouse or child the parent. You can appoint a person to be the trustee or else all the competent nominees will become the trustee. Trustee permission/consent in writing is required before you can modify, surrender or take loan on a trust policy. If there is more than one trustee than all the competent trustee’s written permission is required. Printed overleaf is a sample form for requesting trustee’s permission.
The Act also states that a Policyowner cannot appoint himself/herself as a trustee (Own Trust). Since the provision of the Act relating to nomination and trustee appointment is amended retrospectively it will affect existing nomination/trustee. As such all existing policies with Own Trust will be revoked with effect from 1st June 2013.
I don’t know about you but it took me a third read before I could catch on to what the letter was attempting to tell me. And I hope that I’ve been correct in my interpretation. More next time….