How To Claim Income Tax Reliefs For Your Insurance Premiums
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tax relief

There are quite a few types of tax reliefs that you can claim to reduce your chargeable income and thus pay less in taxes, and some of the biggest reliefs you can get are from any insurance policies that you may own.

If this is your first time filing your taxes, claiming for your insurance premiums is not as straight forward as putting the total premium you pay for your policy each year. The premium is broken down into a few charges, such as Life, Medical, and Others. It is important that you make the proper claims for income tax relief when filing your tax returns in Malaysia, because you may end up overstating the amount in your tax filing and risk being penalised for this error.

In this article, we will walk you through claiming tax reliefs for your insurance payments. More precisely, we will help you identify what to look out for in your annual insurance statements, as well as how exactly to claim for tax reliefs for your insurance in your income tax returns form (ITRF).

What are the income tax reliefs offered for insurance?

When it comes to insurance policies, these are the claimable tax reliefs offered for Malaysia personal income tax:

Malaysia Income Tax Relief Claim Allowed
Life insurance and EPF ·       Up to RM7,000 for life insurance public servants

·       Up to RM3,000 for life insurance and up to RM4,000 for EPF for non-public servants

Education and medical insurance Up to RM3,000 for self, spouse, or child
Private retirement scheme (PRS) and deferred annuity Up to RM3,000

What is an annual insurance statement?

Your annual insurance statement, also sometimes called an annual premium statement, is a document that lists out your insurance plans with that particular insurer, the amount of premium paid for that year, and the types of coverage you are entitled to. These details will be vital in helping you claim your insurance tax reliefs.

Here is how a typical annual insurance statement would look like:

insurance income tax 1

Example for AIA

premium statement example great eastern

Example for Great Eastern

How to read your annual insurance statement for tax relief claims

For the purposes of income tax relief claims, you will need to depend on your annual insurance statement to know how much you are entitled to claim for. Most insurers already make this quite easy for you, as the statement will break down the amount you can claim under Life, Medical, Critical Illness (also sometimes referred to as “Medical/Life”), and others.

Your different types of insurance or coverage will need to be properly sorted out and claimed accordingly under the different types of income tax relief available for insurance. Here’s a table to help you match your insurance types to the right category:

Claim under Types of Insurance/Coverage
Life insurance premium Life

  • 100% of premium claimable



  • 100% of premium claimable



  • 100% of premium claimable
  • Alternative: Claim under “Education and medical insurance” if your nominee is a child
Education and medical insurance Education

  • 100% of premium claimable



  • 100% of premium claimable


Critical Illness

  • 60% of premium claimable

Alternative: Claim 100% under “Life insurance premium” if your critical illness insurance is attached to your life insurance

Private retirement scheme (PRS) and deferred annuity Annuity/Deferred Annuity

  • 100% of premium claimable

Do note that premiums paid for accidental and waiver riders are not eligible for tax reliefs.

In your online tax filing form, here’s where you should enter the corresponding amounts in your premium statements (highlighted in red):

insurance income tax 2

insurance income tax 3


To illustrate how you should calculate your insurance tax reliefs, here’s a scenario: an individual has three insurance plans with AIA that includes a few types of coverage. Here are his annual insurance statements:

insurance income tax 4

In the example above, the statement expressly states the amount of premium paid for each coverage type. From here, it’s as simple as adding up the amount for each coverage type. Note that for Critical Illness, the individual can either claim 60% of that amount under Education & Medical Insurance, or 100% of it under Life Insurance. Play around with the figures: the aim here is to maximise claims from both Life Insurance and Education & Medical Insurance since they are two separate allocations.

Based on the three statements provided above, here’s how the calculation for tax relief claims will look like:

Life insurance premium Education and medical insurance PRS and deferred annuity
Statement 1 1,321.47
Statement 2 981.99 2,018.01
Statement 3 1,565.10 140.94
(60% x 234.90)
Total 3,868.56 2,158.95

In other words, the individual is actually entitled to claim RM3,868.56 under Life insurance and RM2,158.95 under Education & Medical insurance. However, the Inland Revenue Board (IRB) has specified that an individual can only claim a maximum of RM3,000 for Life insurance (non-public servant) as well as RM4,000 for Education & Medical insurance, respectively.

Since the RM3,000 Life insurance allocation has been maxed out, it makes more sense to claim the remaining Critical Illness insurance under Education & Medical insurance, even if the individual can only claim 60% of the amount.

As such, the final insurance tax reliefs will ultimately look like this:

insurance income tax 5

As mentioned earlier, some insurers provide annual insurance statements that have been prepared especially for income tax relief claims, where the premiums are already itemised to easily show how much you can claim for each relief. If that is the case, then all you need to do is to input the figures provided in your statement into your income tax return form – no need for calculations!


By protecting yourself and your loved ones with your insurance plans, you also reduce your total taxable income (and hence paying less income tax overall). This is actually one of the many ways the Malaysian government is encouraging Malaysians to be insured.

Hopefully, this will help you better understand how to claim your insurance tax reliefs. If you have any other questions about filing your tax income, do check out our Income Tax page or any of these articles below:

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1 year ago

My daughter is 25 years old, still unemployed and son 21 years old , student at a university.
I have been paying for their insurance for the past 15 years and am still paying those premiums.
Can I claim for those premiums, some are life, some education/ life/ medical?
Thank you

1 year ago

Thanks for the info.

Someone know if I can deduct Medical Insurance Premiums paid in another country ?

1 year ago

Can CLTA/MRTA insurance claimable under Tax Relief since it’s similar to Life Insurance for Death/TPD?

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