21st January 2022 - 2 min read
The chief executive officer of the Malaysian Takaful Association (MTA), Mohd Radzuan Mohamed has commented that insurance coverage needs to be made more accessible and affordable for the public. This is to encourage Malaysians to get themselves insured, as many are currently wary and reluctant to do so.
According to Mohd Radzuan, one key reason for this reluctance is the lack of awareness about the importance of being insured. He stressed that insurance knowledge is not a problem in Malaysia, but the people are just not aware of how crucial it is to have coverage. Instead, they view it as a luxury instead of necessity.
Mohd Radzuan also emphasised that insurance and takaful should be seen as a form of risk management instrument used to hedge against contingent or uncertain loss, as well as a means of protection from financial difficulties. “Sadly, those most vulnerable to financial loss are the ones least covered by insurance,” he said, citing victims of the devastating floods in December 2021 as examples.
Mohd Radzuan further commended the government for its efforts in making insurance coverage more affordable via the Perlindungan Tenang Voucher (PTV) programme. However, he said that very few eligible individuals have applied for the programme, and that the insurance industry must work with non-governmental organisations to reach out to these target groups. Non-eligible individuals are also encouraged to contact their insurance companies to discuss their financial planning needs.
The PTV programme was first introduced under Budget 2021 to provide eligible B40 recipients with RM50 vouchers so that they can purchase Perlindungan Tenang products, including life and personal accident takaful. The amount was subsequently increased to RM75 under Budget 2022.
Finally, Mohd Radzuan urged the public not to shy away from purchasing insurance coverage because of the premiums. Consumers must understand that insurance coverage can be tailored to accommodate their needs, and it does not necessarily have to be expensive, he said. “Get the right information from the right people, and you will get the help needed,” he commented.
(Source: The Sun Daily)
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