KUALA LUMPUR, 10 September 2019 – The government is likely to revise the national insurance penetration rate to reach 75% in 2020, said Finance Minister Lim Guan Eng during the opening of Menara Prudential at Tun Razak Exchange (TRX).
Lim said pricing and affordability could be the main reasons why less than 41% of Malaysians own at least one individual or group life insurance policy or family takaful.
“Almost half of all Malaysians are uninsured with a life insurance penetration rate of 55% that has been stagnant for years,” he added.
mySalam is one of the government’s effort to achieve the national insurance penetration rate, which caters to the B40 group who are also recipients of Bantuan Sara Hidup (BSH) 2019, aged between 18 to 55.
“Through this insurance protection plan, the government will provide RM8,000 and a hospitalisation income of RM50 per day at any government hospitals for maximum of 14 days, and up to RM700 per year,” Lim added.
Lim Guan Eng also encourages insurance providers to develop more diversified and affordable choices of insurance protection plans for the under-served who are largely from the low-income group.
“I am encouraged to hear of Cha-Ching, Prudential’s financial education programme carried out at schools and PRUkasih, a free financial protection plan that provides temporary financial relief to urban low-income families,” he said.