Alex Cheong Pui Yin
Previously covered recruitment-related stories and had a short stint as a copywriter for the property industry. She subsequently developed an interest in investment and robo-advisors.
MyezyCover Scheme Enables Civil Servants To Now Purchase Motor Insurance In Instalments
Alex Cheong Pui Yin
25th November 2021 - 2 min read
The government has introduced a MyezyCover scheme that will allow about 1.7 million civil servants to purchase or renew their vehicle insurance with interest-free instalments. This will especially benefit those who fall under the B40 income group.
Implemented with an investment of RM100 million from the Social Security Organisation (SOCSO), MyAngkasa Amanah Berhad (MAAB), and A Tech Insure, the shariah-compliant scheme will enable civil servants to buy or renew motor insurance via a few payment options. They can opt for either monthly payments, one payment every four months, or a full-sum payment – with monthly instalments starting from as low as RM50.
“Those who make a one-payment purchase would receive a 10% discount with payment via salary deduction by Angkasa,” said the minister of the Human Resources Ministry, Datuk Seri M Saravanan during the launch, adding that the scheme will later be expanded to government and private sector retirees as well.
The minister also explained that SOCSO had decided to join the programme as an investor because it was aware of civil servants who were struggling to cover their vehicle insurance payments. Some had to wait until the end of the month for their salaries before they could renew their car insurance, despite it expiring in the middle of the month. Others even went so far as to purchase their road tax and car insurance with loans from illegal money lenders, aside from cooperatives or with credit cards.
In light of such a situation, Datuk Seri Saravanan reached out to insurance companies for a discussion. “Looking at their [civil servants’] cashflow losses through such loans, I discussed with insurance companies and was told they have no objection to providing instalment payment scheme as some parties could put up the payment first. So I discussed with SOCSO and other parties to participate in the programme as investors,” he said.
Datuk Seri Saravanan further stated that he is confident the programme will help to reduce the financial burden on the people, especially civil servants, and can contribute to the eradication of poverty.
(Source: Malay Mail)
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Alex Cheong Pui Yin
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