THE Life Insurance Association of Malaysia (LIAM) and the Malaysian Takaful Association (MTA) have announced several relief measures to ensure policyholders/certificate holders affected by Covid-19 continue to have life insurance/family takaful protection even in the midst of temporary financial difficulties.
The relief measures consist of the deferment of payment of life insurance premiums and family takaful contributions; and extension of flexibilities to reinstate or preserve life insurance and family takaful protection, said LIAM and MTA in a joint statement here today.
Under the deferment of payment of life insurance premiums and family takaful contributions, this option would be available from April 1, 2020 until Dec 31, 2020.
The statement explained that life insurers and family takaful operators would allow policyholders and takaful participants affected by Covid-19 an option to defer the regular premium/contribution payments due under life insurance policies and family takaful certificates for three months without affecting the policy coverage.
“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,” said both the associations.
Meanwhile, under the extension of flexibilities to reinstate or preserve life insurance and family takaful protection, life insurers and family takaful operators would provide assistance to those affected by Covid-19 until Dec 31, 2020.
The assistance, among others, will include extending the period during which a policyholder and takaful participant affected by Covid-19 can reinstate a policy/certificate that has lapsed; and to provide options to enable policyholders and takaful participants to continue to meet their premium/contribution payments and maintain their policies/certificates.
This may include changes in the sum assured/covered, adjustments to the premium/contribution structure and conversion into a paid up policy.
“With these relief measures, the industry hopes that the customers affected by Covid- 19 will be able to continue with their livelihood during this trying times and help them cope with the immediate health effects of the virus and the economic consequences,” said the associations.
For FAQ on the deferment of payment of life insurance premiums and family takaful contributions, kindly visit www.liam.org.my or www.malaysiantakaful.com.my – March 28, 2020, Bernama
