Business Takaful

Source: The New Straits Times, 22nd April 2008

Takaful Ikhlas Sdn Bhd is confident that its newly-launched medical plan will rake in RM6 million in contribution in the first 12 months. The takaful operator targets some 500 cases each month for the new Ikhlas Medic Assit Takaful (IMAT), said it senior vice-president Wan Mohd Fadzlullah Wan Abdullah.
IMAT is Takaful Ikhlas’ first stand-alone individual medical policy that comes with a cashless hospital admission card.

The Hospital Admission Assist (HAA) card allows for cashless hospitalisation made availed to a network of 80 hospitals nationwide. The essence of cashless hospitalisation is that the insured individual need not make an upfront payment to the hospital at the time of admission.

“IMAT in full is to assist our customers to receive hassle-free first-class treatment at a hospital,” said Wan Mohd Fadzlullah.

All one needs to do at the time of hospitalisation at a network hospital is to produce the HAA card as proof of being covered by Takaful Ikhlas health policy. IMAT was launched last Sunday by Prime Minister Datuk Seri Abdulah Ahmad Badawi.

He said the company decided to launch the medical plan in response to the rising cost of healthcare.
“The costs for treatment at hospitals have been escalating at about 13 per cent annually. A simple surgery can cost you thousands. Unprepared, a sum this much can put anyone in serious debt. No one should have to go through that phase,” he said. With IMAT, he said, one can from as little as 80 sen a day have an affordable and comprehensive medical takaful with more benefits and higher limits.

IMAT comes with five plans of comprehensive hospitalisation and surgical coverage with annual limits that go as high as RM100,000. Inclusive of the overall annual limit, the plan also has a life-time limit that covers for organ transplant, outpatient cancer treatment and kidney dialysis.

“One of the unique selling points of the product is the guaranteed renewal provision,” said Wan Mohd Fadzlullah. Guaranteed renewal means that once a consumer is issued under IMAT, the policy is renewable as long as premiums continue to be paid. Another selling point is the renewal up to age 70 and the certificate can be extended to a participant’s children between the age 30 days and 19 years.

Wan Mohd Fadzlullah said Takaful Ikhlas will distribute the product through its 4,500-strong agency force as well as other corporate agents and brokers. The unit of MNRB Holdings Bhd has seven branches nationwide namely in Kuala Lumpur, Johor Baru, Kota Baru, Sungai Petani, Kuching and Malacca. Another branch is slated to be opened in Kota Kinabalu on May 10 this year. The takaful operator also plans to open three more branches in Putrajaya, Ipoh and Kuantan in the next three to four months.

The company aims to increase the number of policyholders to reach 520,000 by the accounting year ending March 2009 from 500,000 currently. Takaful Ikhlas targets RM520 million in premiums for its 2009 financial year with the insurance company’s new business strategy and the strengthening of internal resources. Its president Syed Moheeb Syed Kamarulzaman recently forecast RM480 million in premiums for its financial year ending March 31 2008, driven largely by products under the general and family takaful segments. For the current year, about 80 per cent of the total contribution is expected from the family or life segment and the balance 20 per cent from the general side.