Life insurers and family takaful operators extend premium, contribution payment deferment to Dec 31

KUALA LUMPUR, June 22  -- The Life Insurance Association of Malaysia (LIAM) and Malaysian Takaful Association (MTA) announced that all life insurers and family takaful operators have extended the COVID-19 Relief Program on deferment of premium payment/takaful contribution and additional relief measures to Dec 31, 2021 for policy/certificate holders who are financially affected by the pandemic.

In a joint statement today, the General Insurance Association of Malaysia (PIAM) also announced that all general insurers would continue to offer additional relief measures to policyholders affected by the pandemic until Dec 31, 2021.

“Under the COVID -19 Relief Program, life insurers and family takaful operators will continue to provide insurance/takaful protection to the affected policy/certificate holders including those who are unable to earn an income to have a grace period of three months (or 90 days) to pay premium/contribution due,” LIAM and MTA said.

They said the extension of the relief program is in response to the need of affected policy/certificate holders who might continue to face financial difficulties during this COVID-19 pandemic.

“The deferment of three months premium/contribution payment was introduced since April 2020 as an optional premium/contribution deferment program where policy/certificate holders may approach their insurer/family takaful operator to apply for this Relief Program,” they said. 

Additionally, they said life insurers and family takaful operators have pledged to assist policy/certificate holders who are in need and are unable to meet insurance premium/takaful contribution payments because of job loss or other effects on the economy stemming from the pandemic.

“This include the individuals who have been infected or suffered a loss of income and small and medium enterprises (SMEs) which have suffered a loss of income as a result of the economic impact of the COVID-19 situation,” they said.

As at May 17, over 1.2 million life insurance policyholders and 500,000 family takaful certificate holders have benefited from the deferment of premium/contribution payment initiative with premium/contribution value amounting to over RM2.6 billion for life insurance and RM800,000 for family takaful.

Meanwhile, PIAM said the general insurance industry has mobilised a total of RM69 million relief measures to date, including deferments and instalment payments of premiums extension of the 60-day premium warranty period and allowing short term renewals.

It said notwithstanding in spite of restrictions applicable to cash before cover (CBC) and tariff policies, some PIAM members had allowed premium deferments for non-CBC/tariff policies on their own initiative to assist policyholders who were facing financial difficulties.

“General insurers have also come forward to provide financial assistance benefitting 190,000 policyholders.

“With the recent announcement of Movement Control Order 3.0, general insurers will continue to allow their policyholders these reliefs,” it said

However, it said policyholders are advised to check with their respective insurers on these relief measures as consideration would be granted on a case-by-case basis based on the insurers’ underwriting provisions.

“With the above relief measures, we hope policy/certificate holders affected by COVID-19 were able to continue with their livelihoods during these trying times and were given much-needed assistance to cope with the immediate health effects of the virus and its economic consequences,” they added. 

-- BERNAMA