KUALA LUMPUR, 10 April 2020 – The Life Insurance Association of Malaysia (LIAM) and Malaysian Takaful Association (MTA) have recorded over 19,000 public enquiries through life insurance and family takaful companies’ call centres, e-mail, customer portal and social media platforms for the past three weeks since the announcement of the various relief measures for COVID-19 by 14 life insurers and 11 family takaful operators in the country.
The relief measures which include the deferment of premium/contribution payment of three months for policy holders/certificate holders who are financially affected by COVID-19 including those who are unable to earn an income to have a grace period of three months (or 90 days) to pay premium due.
The option to defer payment of life insurance premiums/takaful contribution is available from 1 April 2020 until 31 December 2020. All premiums/contributions due from 18 March 2020 to 31 December 2020 will qualify for this premium/contribution deferment option.
The premium/contribution deferment option is applicable for annual, half-yearly, quarterly and monthly premium/contribution modes of payment.
This flexibility may be provided by life insurers and family takaful operators through a no-lapse guarantee, an extension of grace period or any other means that maintain the policy/certificate intact during the deferment period.
This may apply to those who are home quarantined (mandatory) 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.
Other than the three months deferment of premium/ contribution payment, life insurers and family takaful operators are also providing the following assistance to affected policyholders/ certificate holders until 31 December 2020:
i. Extend the period during which a policyholder/certificate holders affected by COVID-19 can reinstate a policy/certificate that has lapsed;
ii. Provide options to enable policyholders/certificate holders affected by COVID19 to continue to meet their premium payments and maintain their policies/certificates. This may include changes in the sum assured, adjustments to the premium/contribution structure and conversion into a paid up policy;
iii. Waive fees and charges imposed for changes made to policies/certificates; and
iv. Waive any penalties for late payments of premiums/contribution, particularly where policyholders/certificate holders affected by COVID-19 are unable to access electronic payment channels during the Movement Control Order.
All policyholders/certificate holders are advised to contact their insurers or takaful operators for more information on the relief measures offered to them during this crisis.
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