LIAM Response on the tabling of 2023 Budget by the Minister of Finance Malaysia, Yang Berhormat Tengku Datuk Seri Utama Zafrul Aziz

(Issued by the Chief Executive Officer of Life Insurance Association of Malaysia (LIAM), Mark O’Dell in conjunction with the tabling of the 2023 Budget by the Minister of Finance Malaysia, YB Tengku Datuk Seri Utama Zafrul Aziz)
Kuala Lumpur, 7 October 2022 - The Life Insurance Association of Malaysia (LIAM) would like to thank the Government for tabling a caring budget for Keluarga Malaysia, particularly the B40 Group category to further enhance their social and financial protection. 
Mark O’Dell, LIAM CEO, said “The extension of the Perlindungan Tenang Voucher (PTV) programme through premium sharing contribution would assist the Bantuan Keluarga Malaysia (BKM) recipients to further enhance their financial well-being through life insurance protection.”
Currently, a BKM recipient contributes a minimum of RM5 for the redemption of the RM75 PTV to enjoy the benefits of insurance coverage that provides financial protection in the event of death or other unfortunate events.   The premium sharing concept will empower BKM recipients to take ownership of the Perlindungan Tenang products that they plan to purchase and will increase their understanding of life insurance benefits and protection. 
We are indeed very grateful to the Government for this noble initiative that has started since 2021 with the introduction of the PTV RM50.  The Government has increased the RM50 subsidy to RM75 in 2022 to enable more Malaysians to continue their life insurance protection through the benefits of Perlindungan Tenang insurance products.  
The encouraging take-up rate of the PTV programme by BKM recipients bodes well with the industry’s financial inclusion agenda.  It is indeed the best opportunity for BKM recipients to introduce financial planning in their families. 
“In the 2021 Financial Capability and Inclusion Demand Side (FCI Survey) released by Bank Negara Malaysia on 5 October 2022, it was reported that 1 in 3 individuals indicated no interest in learning about insurance or takaful products.  As such, the Government’s initiative to continue with the PTV scheme will encourage more recipients to continue with their insurance ownership, and to protect their family and loved ones against key risks in life. The availability of Perlindungan Tenang products is important in providing immediate financial relief in the event of misfortune.  Family members can have the peace of mind knowing that financial relief is available in an easy and timely manner,” Mark added.
The industry foresees the extension of the PTV initiative would benefit majority of B40 households in the country. Ultimately, it would help to fulfil the nation’s aspiration of increasing the insurance ownership amongst the population and accomplish the industry’s financial inclusion agenda
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