COVID-19 Pandemic: LIAM and MTA announce relief measures to ensure policyholder/certificate holders affected by COVID-19 continue to have life insurance/family takaful protection even in the midst of temporary financial difficulties
Amongst others, affected policyholders/certificate holders are given the flexibility to delay premium/contribution payments for 90 days
Kuala Lumpur, Friday, 27 March 2020 – The Life Insurance Association of Malaysia (LIAM) and the Malaysian Takaful Association (MTA) today 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 following:
1. Deferment of payment of life insurance premiums and family takaful contributions
Life insurers and family takaful operators will 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. This option will be available from 1 April 2020 until 31 December 2020.
Policyholders/certificate holders affected by COVID-19 need to seek the approval of their insurance company or takaful operator for the deferment of payment of life insurance premiums and family takaful contributions.
2. Extension of flexibilities to reinstate or preserve life insurance and family takaful protection.
Additionally, life insurers and family takaful operators will also provide the following assistance to the policyholders and takaful participants affected by COVID-19 until 31 December 2020:
i. Extend the period during which a policyholder and takaful participant affected by COVID-19 can reinstate a policy/certificate that has lapsed;
ii. Provide options to enable policyholders and takaful participants affected by COVID-19 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;
iii. Waive fees and charges imposed for changes made to policies/certificates; and
iv. Waive any penalties/consequences for late payments of premiums/contributions, particularly where policyholders/takaful participants affected by COVID-19 are unable to access electronic payment channels during the Movement Control Order.
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.
The unprecedented situation demands that we continue to respond proactively as the industry is concerned over this outbreak which has impacted many lives including healthcare workers, patients and policyholders.
As the flexibilities provided for vary from company to company, policyholders and certificate holders affected by COVID-19 are advised to check with their respective life insurance companies/takaful operators for more details. (Refer to Appendix A for contact details)
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
Puan Norizan bt Hassan
Head of Corporate Communications
Life Insurance Association of Malaysia
No. 4, Lorong Medan Tuanku Satu
50300 Kuala Lumpur
Puan Siti Nor Kamariah Ishak
Head, Corporate Communications
21st Floor, Main Block
Menara Takaful Malaysia
Jalan Sultan Sulaiman
50000 Kuala Lumpur