| Waive Housing Loans For All Medically Unfit Civil Servants, Says CUEPACS |
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KUALA LUMPUR, Nov 22 (Bernama) -- Cuepacs is asking the government to write off the housing loans taken by all civil servants who are medically boarded out during service.
Cuepacs secretary-general Ahmad Shah Mohd Zin said that currently, only those who had taken loans after Aug 1, 1995, need not repay the balance if they were unfit to continue working.
Those who took the loans earlier had to continue paying because their insurance covered only death and fire but not permanent disability.
"This means that the civil servants need not pay the balance of the loan only upon death or fire to their house but not if they are medically boarded out of service due to permanent disability," he said.
Some 50,000 civil servants are believed to be in such a predicament.
Cuepacs wanted the treasury circular 6/95 to be amended to include all civil servants who had taken the loans to be covered for permanent disability without a cut-off date, Ahmad Shah said.
Insurance industry sources said it was easy for the government to overcome this by having a supplementary contract with the insurance company to make provisions for the additional coverage.
But the question arises as to who should bear the additional premium cost, the government or the civil servant.
-- BERNAMA
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