Page 26 - LIAM Annual Report 2020

ANNUAL REPORT 2020
24
24 ANNUAL REPORT 2020

DEFERMENT OF 3-MONTH PREMIUM Policyholders who qualified for this relief include
PAYMENT FOR POLICYHOLDERS those who are COVID-19 positive patients, those
IMPACTED BY THE PANDEMIC who are home quarantined (mandatory) or those
In April 2020, life insurance companies in Malaysia who suffered a loss of income. The relief was also
granted a 90 days deferment period/no-lapse extended to small and medium enterprises (SMEs)
guarantee to policyholders impacted by the which have suffered a loss of income due to the
COVID-19 pandemic. During this period, life insurance COVID-19 pandemic. Examples of events that led
companies continued to provide insurance protection to such loss of income include retrenchment, shorter
to affected policyholders who were not able to pay working hours and salary or commission reductions
for their premiums. Affected policyholders applied for individuals, and loss of business income for the
to their insurance companies for approval for the self-employed and SMEs.
deferment of payment of life insurance premiums The industry continued to provide other forms of
before they could benefit from this relief measure. support to help policyholders keep their policies
This option was available from 1 April 2020 until 31 in force. Some of these include a restructuring of
December 2020.
policy features, such as lowering the sum assured or

Life Insurance Association of Malaysia