Business Takaful

Source: Bernama, 16th June 2008

An insurance consultancy firm has suggested that the government set up an insurance consortium to distribute the financial aid it has been giving to the people amid the increased cost of living following the rise in oil price and other goods recently.

Chairman of Suria Risk Consultant Sdn Bhd Tengku Kudin Tengku Nawal Kudin said the consortium should be set up as soon as possible so that the government would be able to give out the subsidy and other forms of assistance to the people directly.

“The government recently announced the provision of RM625 to each owner of a car below 2000cc and RM150 to each owner of a motorcycle of below 250cc.

“The government’s aim in doing this is to generate the country’s economy as well as to reduce the people’s burden following the petrol price hike,” he told Bernama here Monday.

However, the government has no control over how the given money is spent and whether the people really enjoy the rebate given.

Tengku Kudin said the establishment of an insurance consortium will enable the people to enjoy various benefits such as medical benefit, education assistance and death related claims without having to spend too much to buy insurance.

“Through an insurance consortium, the people will get the benefits from the government without any worry and the government will be able to render its assistance to the people without involving a third party,” he said.

He said the consortium could be formed as a non-governmental body under the Prime Minister’s Department and administered by qualified government retirees with high integrity.

The governmnet will become the largest fund contributor while giant corporations like Petronas, Tabung Haji and Celcom will be encouraged to participate in the move to take care of the welfare of Malaysians.

Mohd Aszemi Ibrahim, an insurance expert and also advisor on the proposal for the establishment of the insurance consortium, said the facilities being suggested will be for the benefit of all people in the country.

Each citizen wanting to enjoy the benefit will have to only produce the MyKad as the qualification as the benefits will be automatic for each citizen of this country.

The consortium will also involve all insurance companies in Malaysia as the risk bearing parties and the suggested premium that would have to be paid for each citizen is RM300 a year, he said.

Mohd Aszemi said the insurance consortium will not jeopordise the country’s insurance industry as it will be more for giving assistance to the low income group that cannot afford to get insurance coverage.