LIAM Calls For Higher Tax Relief For Medical Insurance - Bernama

KUALA LUMPUR, Sept 4 (Bernama) - The Life Insurance Association of Malaysia (LIAM) has called on the government to consider increasing the current RM3,000 tax relief for child education and medical insurance to RM6,000.

According to the association, the current RM3,000 tax relief is not sufficient for a family to plan for their children's education needs and healthcare requirements.

"With the rising costs of education and medical treatment, Malaysians should be encouraged to take up financial planning," it said in a statement Tuesday.

LIAM said the combined tax relief of RM6,000 for life insurance/takaful premiums and contribution to the Employees Provident Fund (EPF) was inadequate.

The association proposed that a separate tax relief be given solely for life insurance premiums.

LIAM also proposed that private pension schemes be established by the government to enable the working population to plan for their retirement.

"The aim is to assist Malaysians to achieve financial independence after retirement. Relying on EPF savings alone is insufficient as retirees would have to ensure their life-time savings could last another 20 to 30 years," the association said.

"There is also a large group of self-employed (about 25 percent of the working population ) who may not have any retirement savings," it added.

Another proposal by LIAM called on the government to review the tax structure of life insurance business by removing the eight percent tax paid by policyholders.

"This is to make life insurance a competitive savings/protection plan compared to unit trusts and bank deposits which are generally tax-free," the association said.

-- BERNAMA

Implement National Health Insurance Carefully, Says Chua

KUALA LUMPUR -- The National Health Insurance Scheme, as proposed in the Ninth Malaysia Plan, has to be implemented carefully to ensure it is accepted by people at all levels of society, Health Minister Datuk Seri Dr Chua Soi Lek told the Dewan Rakyat Thursday. He said while the scheme was proposed with a noble intention to offset the high medical cost borne by the government and the people, the ministry was aware of the implications and obstacles from financing of the scheme. "Planning for the scheme will take into account studies commissioned by the government, inputs and feedback from various parties, including from the public and private sectors and non-governmental organisations. "The government is also studying various models, including experiences of foreign countries," he said in his written reply to Datuk Suhaili Abdul Rahman (BN-Labuan). The scheme, whose implementation mechanism and date have not been finalised, would provide the people better access to medical treatment and help check spiralling medical costs, he said. "The scheme will also provide more flexibility and freedom in opting for the preferred healthcare either in the public or private sector," he said. While the national insurance scheme was compulsory for all Malaysian citizens and permanent residents, the people would not be prevented from buying private health, accident or life insurance, he said. The government would ensure nobody was deprived access to quality, efficient and comprehensive healthcare, he added.

25 October 2007, By BERNAMA