LIAM and MTA extend postponement of payment of insurance premiums

KUALA LUMPUR (June 22): The Life Insurance Association of Malaysia (LIAM) and the Malaysian Takaful Association (MTA) announced that all life insurers and family takaful operators have extended the Covid-19 relief program on deferral of payment premiums / takaful contribution and relief measures until December 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 will continue to offer additional relief measures to policyholders affected by the pandemic until December 31, 2021.

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

They said the expansion of the relief program met the needs of affected policy / certificate holders who may continue to experience financial hardship during this Covid-19 pandemic.

“The three month premium / contribution payment deferral has been introduced since April 2020 as an optional premium / contribution deferral program where policy / certificate holders can contact their insurer / family takaful operator to request this relief program. “, they declared.

In addition, they said that life insurers and family takaful operators are committed to assisting policy / certificate holders who are in need and who are unable to pay insurance premiums / takaful contributions in due to job loss or other effects on the economy resulting from the pandemic.

“This includes people who have been infected or have suffered loss of income and small and medium-sized enterprises (SMEs) who have suffered loss of income due to the economic impact of the Covid-19 situation,” said they stated.

As of May 17, more than 1.2 million life insurance policyholders and 500,000 family takaful certificate holders have benefited from the postponement of the premium / contribution payment initiative with a premium / contribution value. amounting to over RM 2.6 billion for life insurance and RM 800,000 for family takaful.

At the same time, PIAM said the general insurance industry has mobilized a total of RM69 million to date, including premium deferrals and installments, an extension of the premium guarantee period of 60 days and short-term renewals.

He said that despite restrictions on cash before cover (CBC) and rate policies, some PIAM members had allowed premium deferrals for non-CBC / rate policies on their own in order to help policyholders faced with financial difficulties.

“P&C insurers have also come forward to provide financial assistance for the benefit of 190,000 policyholders.

“With the recent announcement of the 3.0 Movement Control Ordinance, general insurers will continue to provide these reliefs to their policyholders,” he said.

However, he said policyholders are advised to check with their respective insurers for these relief measures, as consideration would be given on a case-by-case basis based on the underwriting arrangements of the insurers.

“With the above relief measures, we hope that the policy / certificate holders affected by COVID-19 were able to continue earning a living during these difficult times and received much needed assistance to cope with the immediate effects of the virus on health and its economic consequences. “, they added.

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