Malaysia-based insurance companies have rolled out 10 affordable protection plans under Perlindungan Tenang - a national initiative supported by Bank Negara Malaysia to serve the needs of all Malaysians.
The Life Insurance Association of Malaysia (LIAM), Malaysian Takaful Association (MTA) and General Insurance Association of Malaysia (PIAM) are jointly committing to develop a sustainable market where insurers and takaful operators offer product choice through various distribution channels, good protection value, and administrative ease during the purchase and claims process.
The batch includes six life insurance products, three family takaful products and one general insurance product, according to a joint statement by LIAM, MTA and PIAM.
"Riding on three basic criteria of being affordable, accessible and simple, the products available under Perlindungan Tenang were developed by insurers and takaful operators to enhance financial inclusion of underserved segments in Malaysia, particularly the bottom 40% of household," it said.
The initiative aims to reach out to eight million working-age Malaysians and over 700,000 micro enterprises that currently need insurance and takaful protection against key risks in life.
"Ultimately, it would help to fulfil the nation's aspiration of reducing the protection gap and insuring 75% of the population by 2020," the statement said.
"In the next few months, more products from the insurance and takaful companies will be added to the list to serve the various needs of Malaysians," the statement said.