Insurance offers protection, savings

18 July 2007, By New Straits Times
KUALA LUMPUR: Less than 40 per cent of Malaysians have insurance protection. Domestic Trade and Consumer Affairs Minister Datuk Shafie Apdal said this was because many did not realise that insurance not only provided protection but was also a form of savings. "This savings element can be used to meet future financial demands such as for education and family needs," he said at the launch of the National Insurance Association of Malaysia’s whole life insurance policy "Bijak Malaysia". The policy offers insurance coverage up to the age of 88 years against death as well as total and permanent disability due to natural and accidental causes. It will be sold by nine banks: Alliance, AmBank, CIMB, EON, Hong Leong, Maybank, OCBC, RHB and United Overseas. NIAM chairman Sonny Tan said: "Bijak Malaysia will be offered by the banks. "This is in line with the government’s effort to improve the insurance penetration rate through banks." Bijak Malaysia’s policy offers four plans with RM100, RM200, RM300 and RM500 monthly premiums. Tan said: "Usually, insurance policies have a fixed sum assured but in this case, our premiums are fixed." Since its soft launch in mid- June, total premium revenue for Bijak Malaysia was more than RM1.5 million from 2,000 policyholders. The two popular plans were the RM100 and RM200 plans. NIAM Bancassurance committee chairman Koh Heng Kong said they expected an annual premium revenue of RM50 million. The entry age for the policy is from 30 days to 53 years and policyholders will stop paying premiums after 55. On top of receiving the full sum assured upon maturity, there is a guaranteed cash payout every three years at five per cent of the sum.