All life insurance companies and family takaful operators have extended the three-month deferment premium/ contribution payment initiative for policy/certificate holders financially affected by the pandemic up to June 30.
The Life Insurance Association of Malaysia (LIAM) and the Malaysian Takaful Association (MTA) said in a statement on Friday during this period they will continue to provide insurance and takaful protection to the affected policy/certificate holders.
The protection includes those who are unable to earn an income to have a grace period of three months (or 90 days) to pay premium/ contribution due.
The extension is in response to the need of affected policy/certificate holders who may continue to face financial difficulties during this recovery phase of the Covid-19 pandemic.
However, policy/certificate holders are advised to check with their life insurers or takaful operators on their eligibility for this initiative.
LIAM President Loh Guat Lan said the impact of this Covid-19 is huge and prolonged. As such, the industry needs to continue to safeguard the customers’ interest.
“The intended outcome is to enable policy/certificate holders to maintain their insurance/takafulprotection coverage during this challenging period, ” she said.
“If the application by the policy/certificate holder is approved, the policy/certificate will remain in force during the deferment period.
“Once the deferment period ends, contractual provisions regarding premium/contribution payment will resume as usual. This deferral is a one-time exercise only although insurers or takaful operators can allow more liberal deferral at their discretion, ” Loh said.
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.
Additionally, life insurers and family takaful operators will also assist policyholders and takaful participants affected by Covid-19 to reinstate or preserve their life insurance and family takaful protection.
Source: The Star
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