18th January 2021 - 2 min read
Following the government’s call for a private and public healthcare partnership to manage the increasing case of Covid-19 patients, the insurance and takaful industry have stated that they are “fully supportive” of the matter.
“Generally, pandemic-related risks are not covered under any insurance and takaful plans worldwide,” the Life Insurance Association of Malaysia (LIAM) said in a statement. “The exclusion stems from the difficulty in pricing for coverage relating to an event like a pandemic that may occur once in a lifetime, having an incalculable impact and cost. Covid-19 is a pandemic, hence it is not insured or covered under medical and health insurance/takaful benefits.”
Nonetheless, the industry is currently working with the Ministry of Health and Bank Negara Malaysia to explore avenues where insurers and takaful operators can “ease some of the expenses” of patients required to be treated in private hospitals for Covid-19.
“The industry is supportive of protecting the policyholders’/certificate holders’ interests and contributing to the success of the private and public partnership in winning the battle against the Covid-19 pandemic,” the statement concluded.
Since the early stages of the pandemic in 2020, the majority of life insurers and takaful operators have responded by providing supplementary benefits to policyholders diagnosed with Covid-19. These include payment of a daily hospital income, additional death benefits, an allowed deferment of premium payments, and the RM8 million Covid-19 Testing Fund.
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