23 Jun - 3 min read
The Life Insurance Association of Malaysia (LIAM) and Malaysian Takaful Association (MTA) have extended the Covid-19 Relief Programme until 31 December 2021. This programme, which was first introduced in April 2020, allows policy or certificate holders who are financially affected by the Covid-19 pandemic to defer the payment of their premium or takaful contribution for a grace period of three months.
This includes individuals who have suffered a loss of income and small and medium enterprises (SMEs) which have suffered a loss of income due to Covid-19. Examples of events recognised as loss of income include retrenchment, shorter working hours, and salary or commission reductions for individuals; and loss of business income for the self-employed and SMEs.
The following assistance is available to affected persons:
Over 1.2 million life insurance policyholders and half a million family takaful certificate holders have benefitted from the deferment option as at 17 May. The value of the deferment amounted to over RM2.6 billion for life insurance and RM0.8 million for family takaful.
On top of that, insurance providers have taken additional proactive steps since early 2020 which include extending cash relief efforts for those diagnosed with Covid-19 (hospitalisation allowance and lumpsum death benefits) and RM10 million in contribution towards the Covid-19 Test Fund that was fully utilised in May 2021 and benefitted over 65,000 policy/certificate holders.
From April to December this year, life insurers and family takaful operators have pledged additional fresh funds in the form of medical assistance for Covid-19 treatment in government or private hospitals, as well as serious vaccine side effects under the National Immunisation Programme. You can contact your insurance company directly to find out more about assistance offered for serious vaccine side effects.
Meanwhile, Persatuan Insurans Am Malaysia (PIAM) also announced that all general insurers will continue to offer additional relief measures until 31 December for affected policyholders. However, policyholders are advised to check with their insurers regarding these relief measures as consideration will be granted on a case-by-case basis based on the insurer’s underwriting provisions.
To date, the general insurance industry has mobilised relief measures to a total value of RM69 million. These measures include deferments and instalment payments of premium extension of the 60-day premium warranty period and allowing short-term renewals. In spite of restrictions applicable to Cash Before Cover (CBC) and tariff policies, some PIAM members have also allowed premium deferments for non-CBC/tariff policies on their own initiative to assist policyholders in need.
(Source: The Sun Daily)
Subscribe to our exclusive weekly newsletter and we’ll bring you the week’s highlights of financial news, expert tips, guides, and the latest credit card and e-wallet deals.
Stay tuned for what’s to come next in the personal finance world