by RUPINDER SINGH

RHB Bank Bhd has agreed not to enter into any new bancassurance agreements during the ongoing legal dispute with Tokio Marine Life Insurance Malaysia Bhd.

This decision, announced today by the bank, was made to preserve the status quo while the Kuala Lumpur High Court addresses the originating summons filed by Tokio Marine.

The court has scheduled hearings for the originating summons on October 30, 2024 and November 4, 2024.

Instead of setting a hearing date for the interim injunction application, RHB Bank and Tokio Marine have reached an agreement whereby RHB will refrain from entering into new bancassurance deals until the court delivers its decision on the main issue.

“The parties, in order to expedite the matter, agreed that RHB Bank will not enter into any bancassurance agreement with any party in the interim,” the announcement today stated.

This move aims to expedite the resolution of the dispute, which revolves around Tokio Marine’s “right of first refusal” under their bancassurance arrangement agreement set to expire at the end of 2024. By maintaining the current state of affairs, both parties seek to avoid further complications and ensure a fair resolution.

In its statement, RHB Bank noted, “The company remains fully committed to work together with all parties to preserve a thriving and conducive investment climate in Malaysia.” — TMR